Saudi Aramco and ADNOC sign MoU to explore investment opportunities in gas sector

Saudi Aramco and ADNOC sign strategic cooperation agreement on natural gas and LNG. (SPA)
Updated 12 November 2018

Saudi Aramco and ADNOC sign MoU to explore investment opportunities in gas sector

  • Two of the worlds largest oil companies have signed a cooperation agreement to meet global demands for natural gas
  • Saudi Aramco and UAE's ADNOC have been focusing on raising their gas production

ABU DHABI: The state energy giants of Saudi Arabia and the United Arab Emirates, Aramco and ADNOC, signed a cooperation deal Monday aimed at bolstering gas production and revenue.
The agreement was signed by CEO of Saudi Aramco Amin Hassan Al-Nasser and UAE Minister of State and CEO of ADNOC Group Sultan Ahmed Al-Jaber.
The framework deal saw the two biggest Arab oil firms agree to jointly explore investment opportunities and exchange technical expertise as they seek to tap into natural gas and Liquefied Natural Gas (LNG) markets.
The deal also follows an agreement between the two companies earlier this year to participate in an integrated refining and petrochemical project in India.
“This agreement focuses on attractive and valuable investment opportunities in the field of natural gas and liquefied natural gas and represents a collaborative framework between two global giants of the oil and gas industry,” said Al-Nasser.
“Enhancing cooperation with ADNOC will have a positive impact on the sustainability objectives and will benefit the two companies economically,” he said, adding “we have recently announced our intention to invest in a large-scale refinery on the western coast of India.”
“Saudi Aramco is expanding both conventional and non-conventional gas operations and this new agreement helps us accelerate growth in natural gas and liquefied natural gas, enhance our competitive advantage, diversify our business and expand our international gas investment activities,” Al-Nasser said.
Meanwhile, Al-Jaber said the UAE and Saudi Arabia have a close relationship based on history, vision and common strategic interests. 
“Increased cooperation between ADNOC and Aramco will ensure greater energy security and long-term economic prosperity for both nations,” Al-Jaber said.
No further details on the specifics of the agreement were provided but the two companies have been focusing on raising their gas production.
Last week, UAE’s supreme petroleum council approved investments worth $132 billion over the next five years to boost oil and gas production.
Under the investment plan, both countries aim to become self sufficient in natural gas and later net exporters.
As part of its energy push, ADNOC on Sunday granted French major Total an exploration and production concession agreement for natural gas.
LNG is the fastest growing hydrocarbon at 4% per annum. Global demand for this gas is expected to exceed 500 million tons per year by 2035, up from the demand levels in 2017 which amounted to about 300 million tons. 
The concession agreement aims at producing one billion cubic feet daily of gas by 2030.
ADNOC Gas LNG, a subsidiary of ADNOC, is a reliable supplier of LNG. It has a proven track record of 40 years in this field and accounts for 2% of the global market share of LNG.

* With AFP


Electric luxury vehicles, SUVs ‘more likely to cause accidents’

Updated 23 min 13 sec ago

Electric luxury vehicles, SUVs ‘more likely to cause accidents’

  • As EV sales rise, French insurer AXA warns that drivers are struggling to adapt to cars’ rapid acceleration

LONDON: Electric luxury cars and sport utility vehicles (SUVs) may be 40 percent more likely to cause accidents than their standard engine counterparts, possibly because drivers are still getting used to their quick acceleration, French insurer AXA said.

The numbers, based on initial trends from claims data and not statistically significant, also suggest small and micro electric cars are slightly less likely to cause accidents than their combustion engine counterparts, AXA said at a crash test demonstration on Thursday.

AXA regularly carries out crash tests for vehicles. This year’s tests, which took place at a disused airport, focused on electric cars.

Overall accident rates for electric vehicles are about the same as for regular cars, according to liability insurance claims data for “7,000 year risks” — on 1,000 autos on the road for seven years — said Bettina Zahnd, head of accident research and prevention at AXA Switzerland.

“We saw that in the micro and small-car classes slightly fewer accidents are caused by electric autos. If you look at the luxury and SUV classes, however, we see 40 percent more accidents with electric vehicles,” Zahnd said.

“We, of course, have thought about what causes this and acceleration is certainly a topic.”

Electric cars accelerate not only quickly, but also equally strongly no matter how high the revolutions per minute, which means drivers can find themselves going faster than they intended.

FASTFACT

Accident rates among luxury and SUV electric vehicles are 40 percent higher than for their combustion engine counterparts.

Half of electric car drivers in a survey this year by AXA had to adjust their driving to reflect the new acceleration and braking characteristics.

“Maximum acceleration is available immediately, while it takes a moment for internal combustion engines with even strong horsepower to reach maximum acceleration. That places new demands on drivers,” Zahnd said.

Sales of electric cars are on the rise as charging infrastructure improves and prices come down.

Electric vehicles accounted for less than 1 percent of cars on the road in Switzerland and Germany last year, but made up 1.8 percent of Swiss new car sales, or 6.6 percent including hybrids, AXA said.

Accidents with electric cars are just about as dangerous for people inside as with standard vehicles, AXA said. The cars are subject to the same tests and have the same passive safety features such as airbags and seatbelts.

But another AXA survey showed most people do not know how to react if they come across an electric vehicle crash scene.

While most factors are the same — securing the scene, alerting rescue teams and providing first aid — it said helpers should also try to ensure the electric motor is turned off. This is particularly important because unlike an internal combustion engine the motor makes no noise. In serious crashes, electric autos’ high-voltage power plants automatically shut down, AXA noted, but damaged batteries can catch fire up to 48 hours after a crash, making it more difficult to deal with the aftermath of
an accident.

For one head-on crash test on Thursday, AXA teams removed an electric car’s batteries to reduce the risk of them catching fire, which could create intense heat and toxic fumes.

Zahnd said that studies in Europe had not replicated US findings that silent electric vehicles are as much as two-thirds more likely to cause accidents with pedestrians or cyclists.

She said the jury was still out on how crash data would affect the cost of insuring electric versus standard vehicles, noting this always reflected factors around both driver and car.

“If I look around Switzerland, there are lots of insurers that even give discounts for electric autos because one would like to promote electric cars,” she said.