Saudi Aramco and UAE's Abu Dhabi National Oil Company (ADNOC) have signed a framework agreement to explore potential opportunities in the natural gas and Liquefied Natural Gas (LNG) sectors, the two state-run oil majors said in a joint statement on Monday.
Under the terms of the agreement, the two companies will jointly assess investment opportunities across the LNG value chain, which could unlock value and drive revenue growth for both companies. They will also partner on techno-economic feasibility studies and exchange knowledge and experience in LNG growth markets.
“Increased cooperation between ADNOC and Saudi Aramco will ensure greater energy security and long-term economic prosperity for both nations," said Dr. Sultan Ahmed Al Jaber, group CEO, ADNOC.
"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," added Amin Nasser, president and CEO, Saudi Aramco.
LNG is the fastest-growing hydrocarbon with a growth rate of 4 percent per year, twice that of natural gas. Global LNG demand is expected to exceed 500 million tons per year by 2035, up from nearly 300 million tons per year in 2017, the statement said.
Earlier this year, Saudi Aramco signed a memorandum of understanding (MoU) with Royal Dutch Shell to jointly pursue international gas business opportunities, including upstream development, liquefaction projects and other aspects of the gas value chain.
In September, the oil giant said it would spend more than SAR 500 billion ($133 billion) on oil and gas drilling over the next decade.
Separately, ADNOC has announced plans to invest more than $45 billion in downstream operations over the next five years.
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