Abu Dhabi National Oil Company has signed strategic agreements with two Chinese energy companies, to collaborate on low-carbon energy solutions.
A new pact with China National Offshore Oil Company aims to explore opportunities in new energy plans, low-carbon solutions, liquefied natural gas ventures, oil and gas activities, and trading projects, the Abu Dhabi state-run energy company said on Thursday.
Meanwhile, an agreement with China National Petroleum Corporation will focus on the energy value chain, including low-carbon solutions, LNG, oil and gas exploration, advanced technologies, refining, marketing and trading.
The pacts were signed during the visit by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology and managing director and group chief executive of Adnoc, to China this week.
China is among the most significant markets for Adnoc, for its production of crude oil, refined products and petrochemicals, Dr Al Jaber said.
He emphasised that the UAE would remain a partner for China in its role as a reliable energy supplier and highlighted the importance of strategic partnerships in various fields including oil and gas, renewable energy, shipping, and storage.
The two sides also discussed ways to bolster collaboration in key areas such as petrochemicals, renewable energy, photovoltaic manufacturing, logistical services, shipping and storage.
The agreements mark a significant step in the UAE’s continuing efforts to strengthen its energy ties with China, one of its largest trading partners.
Bilateral trade surged 7.5 per cent annually, reaching $95 billion last year, including $83 billion in non-oil trade, according to official figures. Both economies aim to reach a target of $200 billion by 2030.
Earlier this week, Adnoc Logistics and Services announced that AW Shipping, its joint venture with Wanhua Chemical Group, awarded shipbuilding contracts worth $1.9 billion to China’s Jiangnan Shipyard.
Additionally, a consortium comprising Borouge, Adnoc and Borealis has also signed an agreement with Chinese companies this week to set up a polyolefins complex in the Fujian Province, which will have a capacity of 1.6 million tonnes a year. This project is expected to enhance the production of essential materials for various industries.
Chinese investments in the UAE increased by more than 16 per cent annually last year to $1.3 billion, Zhang Yimeng, China’s ambassador to the UAE, said earlier this year.
The UAE boosted its investments in China by 120 per cent last year, accounting for “90 per cent of Arab countries' investments in China”, the ambassador said at an Abu Dhabi event.