A framework agreement was signed by the Abu Dhabi National Oil Company (ADNOC) and Saudi Aramco (Aramco). With this agreement the company aims to discover the synergy between Liquefied Natural Gas (LNG) and natural gas industries.
The framework agreement would enable the two companies to gain more revenue for the two segments. With this deal the companies showcase their strategic focus towards generating greater revenue from the LNG business and natural gas business domain. According to a statement the collaboration will enable exchange of information, experience, and knowledge in the growing LNG market and the companies would partner on techno-economic feasibility studies.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State, said that the UAE has a strong relationship with the Kingdom of Saudi Arabia. This relationship is based on the their mutual strategic interests and with the growing cooperation between Saudi Aramco and ADNOC would ensure increased energy security and economic prosperity for a both nations for a long period of time, he added.
Saudi Aramco President and CEO, Amin Nasser said that the Aramco’s deal with ADNOC strengthens even further with the recent decision of developing a major refinery in India, which is done in partnership. The framework agreement and the mutual strategic interests of expanding their gas business emphasizes their belief in a robust demand growth for gas globally. The corporate transformation strategy of pursuing opportunities which assist in tapping the greater value for both Saudi Aramco and ADNOC and for meeting the needs of its stakeholders across the globe is further supported by their cooperation, he added.
Before the companies signed this agreement, Supreme Petroleum Council of Abu Dhabi (SPC) accepted the new gas strategy proposed by ADNOC that would sustain the production of LNG to 2040, allowing ADNOC to capture incremental growth opportunities in gas-to-chemicals and LNG, where they are developed from the evolving energy mix and dynamic demand and supply position of UAE. With this the company could discover investment opportunities in LNG and produce more value from the international trading expansion in the LNG segment. This will become more prominent with the dominance of the Asian market that would trigger the LNG demand.
The growing investments and partnerships in the natural gas and LNG segment foster the overall growth of the oil and gas sector. These partnerships would offer greater opportunities for the other companies thereby influencing the whole industry.