The Abu Dhabi National Oil Company (ADNOC) unit, ADNOC Logistics & Services signed an LNG bunkering cooperation deal with Japan’s Inpex.

The two companies have signed a framework agreement for an LNG bunkering partnership in the United Arab Emirates (UAE), ADNOC said.

Under the agreement, ADNOC L&S, and Inpex will explore opportunities for LNG bunkering in the UAE as well as the potential to jointly expand LNG bunkering activities to cover other regions, including Southeast Asia, ADNOC’s statement reads.

The use of LNG as a fuel on non-LNG carriers is expected to grow significantly as ship owners seek new compliance solutions to meet the 2020 IMO’s global sulfur cap.

The UAE is strategically located as a major bunkering hub and is a reliable producer and exporter of LNG, through ADNOC LNG.