ADNOC and Saudi Aramco sign framework agreement on natural gas and LNG cooperation
ADNOC and Saudi Aramco to explore potential areas for mutual collaboration in the LNG value chain
ADNOC signed a framework agreement with Saudi Aramco to explore potential collaboration in the natural gas and liquefied natural gas (LNG) sectors.
The agreement was signed by Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Amin Nasser, Saudi Aramco President and CEO.
ADNOC and Aramco will jointly assess investment opportunities across the LNG value chain with the aim of driving revenue growth for both companies. They will partner on techno-economic feasibility studies and exchange knowledge and experience in LNG growth markets.
“The UAE and the Kingdom of Saudi Arabia have a strong relationship built on shared strategic interests," Al Jaber said. "Increased cooperation 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 centers 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.”
The framework agreement follows the announcement that 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. It will enable the company to explore LNG investment opportunities and could expand international LNG trading, especially with Asian markets.
“Our partnership with ADNOC continues to strengthen, after the recent decision to jointly develop a major refinery in India," Nasser said. "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."