Abu Dhabi, Saudi to Co-operate in Gas
The Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco have agreed to explore potential opportunities for collaboration in gas, Adnoc said November 12.
The co-operation brings together two of the world’s leading energy producers from the Arabian Gulf to work together in an area of strategic importance for both companies as they seek to boost revenues from natural gas and LNG business segments, it said. It also brings them into competition with Qatar, which is planning a significant increase in LNG production early next decade.
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The agreement was signed by Adnoc's CEO Ahmed Al Jaber and Aramco's CEO Amin Nasser and obliges them to "jointly assess investment opportunities across the LNG value chain that could unlock value and drive revenue growth for both companies. They will partner on techno-economic feasibility studies and exchange knowledge and experience in LNG growth markets."
Al Jaber said: "The UAE and the Kingdom of Saudi Arabia have a strong relationship built on shared strategic interests. Increased co-operation between Adnoc and Saudi Aramco will ensure greater energy security and long-term economic prosperity for both nations.
"This agreement reinforces our strategy to undertake partnerships with forward-thinking partners who can help accelerate access to new growth centres of global demand. It will ensure that we are well-positioned to secure greater returns from global LNG demand growth by combining the technological and operational expertise of two of the world’s leading national oil companies," Adnoc said.
Its statement continued: "Abu Dhabi’s Supreme Petroleum Council (SPC) has approved Adnoc's new integrated gas strategy that will sustain LNG production to 2040 and allow Adnoc to seize incremental LNG and gas-to-chemicals growth opportunities – where they arise – from the UAE’s dynamic demand/supply position and evolving energy mix. And it will enable the company to explore LNG investment opportunities, as well as create additional value from international LNG trading expansion, in response to the dominant role Asian markets will play in driving demand for liquefied natural gas."
Nasser said: “Our partnership with Adnoc continues to strengthen, after the recent decision to jointly develop a major refinery in India. We have shared strategic interest to expand our gas businesses, and this new agreement underlines our confidence in strong global gas demand growth. Our cooperation further supports the corporate transformation strategy of both Adnoc and Saudi Aramco to pursue opportunities that help unlock greater value for both companies and meet the growing needs of stakeholders around the world that depend on our energy to develop and grow their economies.”