PETRONAS has signed two Memoranda of Understanding (MoU) with United Arab Emirates-based Abu Dhabi National Oil Company (ADNOC) and Masdar to pursue collaborations across the energy value chain.
Discussions between the parties began following His Majesty Seri Paduka Baginda The Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah’s five-day special visit to the UAE in December 2020 at the invitation of the Crown Prince of the Emirate of Abu Dhabi, Sheikh Mohamed Zayed Al Nahyan. The resulting MoUs mark a significant milestone in the Malaysia-UAE bilateral relations.
The PETRONAS-ADNOC MoU spans the entire oil and gas value chain where ADNOC welcomes PETRONAS to seek opportunities to collaborate in the exploration, development, and production of Abu Dhabi’s significant conventional and unconventional resources. The scope extends into potential R&D and applied technology cooperation in enhanced hydrocarbon recovery, carbon capture, utilisation and storage, gas sustainability, specialty chemicals, unconventional resources and hydrogen technologies.
In the downstream sector, PETRONAS and ADNOC will explore cooperation in trading, including the supply of crude and feedstock and the offtake of refined products. Both parties will also assess domestic and international opportunities to maximise value creation down the chain. Another potential is in the area of fuel bunkering and in supporting LNG bunkering vessels at ports in the UAE and the region.
The MoU was formalised by PETRONAS President and Group Chief Executive Officer Tengku Muhammad Taufik Tengku Aziz and UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group Chief Executive Officer His Excellency Dr Sultan Ahmed Al Jaber.
Tengku Taufik said: 'PETRONAS believes the collaboration with ADNOC bears strong testimony to the shared vision of both organisations to pursue value creation through progressive and cleaner energy solutions as we navigate the challenges of an accelerating energy transition. We look forward to working together with ADNOC to address growing energy demand in a responsible and sustainable way.'
H.E. Dr. Al Jaber said: 'We are very pleased to partner with PETRONAS for the first time through this important framework agreement. The agreement is a natural evolution of the strong ties between the UAE and Malaysia and provides an opportunity to deepen the relationship through strategic energy cooperation.
'The agreement offers the potential for exciting opportunities for both companies to unlock and create value across the full oil and gas value chain as we shape our businesses for a post-Covid economy. We see significant potential in this agreement and look forward to converting it into mutually beneficial partnerships.'
The MoU between PETRONAS and Masdar, a global leader in renewable energy, will see both companies build greater access to clean energy solutions.
Wholly owned by Mubadala Investment Company, Masdar will work with PETRONAS to pursue clean energy projects across Asia and the Middle East, covering renewable energy and green hydrogen. The MoU was signed by Masdar Chief Executive Officer Mohamed Jameel Al Ramahi and PETRONAS Power Sdn Bhd Chief Executive Officer and Head of New Energy, PETRONAS Dr Jason Mariyappan.
Both parties will explore joint participation in large-scale solar and wind opportunities for utilities, commercial and industrial customers, focusing primarily in Asia. The collaboration with Masdar will complement PETRONAS’ growing renewables portfolio under its renewable energy arm PETRONAS New Energy, which currently has over 1GW of solar capacity in operation and development in India and Southeast Asia.
The partnership will also explore opportunities for joint production of green hydrogen. PETRONAS is gearing towards commercialising low-carbon hydrogen produced from its existing facilities and is pursuing commercial production of green hydrogen in the near future.
Tengku Taufik said: 'PETRONAS’ MoU with Masdar marks another milestone in our existing partnership with Mubadala, which will now include a focus on renewables and green hydrogen. We are pleased to collaborate with Masdar which shares the same commitment towards a low-carbon agenda. In line with our Statement of Purpose, we look forward to powering more businesses with cleaner energy solutions, leveraging on our respective geographical and technological strengths to bring more sustainable energy projects to fruition.'
'This agreement marks an important step on Masdar’s journey to expand our presence in the Asian market, where we see tremendous potential given the region’s rapid economic growth and potential renewable energy resources,” said Mohamed Jameel Al Ramahi. “We look forward to collaborating with PETRONAS, a world leader in the energy sector and a company committed to sustainable development, to meet the growing demand for renewable energy solutions across the region.'
In November 2020, PETRONAS announced its commitment towards a Net Zero Carbon Emissions by 2050 that will help steer the organisation to continue creating value by providing cleaner energies as part of a holistic approach to sustainability.
See also, ADNOC announcement: ADNOC and PETRONAS Sign Comprehensive Strategic Framework Agreement