Malaysia’s state-owned Petroliam Nasional Berhad (Petronas) has inked two Memoranda of Understanding (MoU) with United Arab Emirate-based Abu Dhabi National Oil Company (Adnoc) and Masdar to pursue collaborations across the energy value chain.
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, the companies 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.
Discussions between the parties began following Malaysia’s King 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.
Petronas President/Group CEO Tengku Muhammad Taufik Tengku Aziz 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.”
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.
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’s 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.
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.