Oil & Gas

26 Sep 2022

Adnoc Signs Agreements to Supply LNG and Diesel to Germany

26 Sep 2022  by   

The deal was signed while German Chancellor Olaf Scholz, accompanied here on Sunday with Mariam Al Mheiri, Minister of Climate Change and Environment, visited the UAE. Reuters

Abu Dhabi National Oil Company signed a deal to supply liquefied natural gas to German energy company RWE during a visit by Chancellor Olaf Scholz to the Gulf to secure energy pacts for Europe's biggest economy.

Adnoc will deliver the first LNG shipment later this year through a floating import terminal at Brunsbuettel near Hamburg, state news agency Wam reported on Sunday.

The size of the LNG cargo delivery will be 137,000 cubic metres and marks an “important milestone” in building up LNG supply infrastructure in Germany and setting up a more diversified gas supply, RWE said.

Adnoc also reserved a number of further LNG cargos exclusively for German customers in 2023, Wam said.

The Adnoc deal is part of a wider agreement between the UAE and Germany signed on Sunday to accelerate projects of joint interest in energy security, decarbonisation and climate action.

Under the new Energy Security and Industry Accelerator (ESIA) agreement, the UAE and Germany will explore further opportunities to accelerate growth and collaboration across the hydrogen value chain.

“This landmark new agreement reinforces the rapidly growing energy partnership between the UAE and Germany,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, and Adnoc's managing director and group chief executive.

“As we embrace the energy transition, Adnoc is fully committed to accelerate and invest in projects of energy security, decarbonisation and climate action as we continue to be a responsible and reliable provider and trusted exporter of low-carbon energy.”

Adnoc, which completed the UAE’s first direct diesel delivery to Germany this month, has agreed with Wilhelm Hoyer & Company KG to supply up to 250,000 tonnes of diesel per month in 2023, Wam said.

As part of the agreements signed on Sunday, Abu Dhabi's clean energy company Masdar will also explore opportunities in the offshore wind markets in the North Sea and Baltic Sea in Germany. These could generate up to 10GW of renewable energy production capacity by 2030, Wam said.

Mr Scholz’s visit comes amid Germany’s attempts to reduce its reliance on — and diversify away from — Russian energy supplies that have been disrupted during the Ukraine war.

Before the war, Russia supplied about 40 per cent of Europe's natural gas. About 55 per cent of gas consumed in Germany was imported from Russia. Natural gas accounts for about 27 per cent of the energy mix of Europe's largest economy.

Following his visits to Saudi Arabia on Saturday and the UAE on Sunday, Mr Scholz is travelling to Qatar after his meetings in Abu Dhabi.


More News