UAE signs energy agreement with Germany, to supply LNG
ADNOC will deliver the first shipment in late 2022
The UAE has signed an agreement with Germany that covers accelerating energy security and industrial growth.
Abu Dhabi National Oil Company (ADNOC) inked an agreement to supply liquefied natural gas (LNG) to German utility RWE.
ADNOC will deliver the first shipment in late 2022 for use in the trial operation of a floating natural gas terminal in Brunsbuettel.
In addition, ADNOC has reserved a number of further LNG cargos exclusively for German customers in 2023.
The signing of the Energy Security and Industry Accelerator (ESIA) agreement was witnessed by the UAE President, His Highness Sheikh Mohamed bin Zayed Al Nahyan, and German Chancellor Olaf Scholz.
The agreement was signed by Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, UAE Climate Special Envoy, and Managing Director and Group CEO of ADNOC, and Dr. Franziska Brantner, Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Climate Action.
ADNOC has also entered into a number of agreements with German customers, including Steag GmbH and Aurubis AG for demonstration cargos of low-carbon ammonia, a carrier fuel for hydrogen that can play a critical role in decarbonising hard-to-abate industry sectors. The first of these cargoes arrived in Hamburg earlier this month.
Furthermore, Masdar, the UAE’s renewable energy champion, will be actively exploring opportunities in the offshore wind markets in the North Sea and Baltic Sea in Germany that could generate up to 10GW of renewable energy production capacity by 2030 subject to the necessary German policy and regulatory requirements being met between the two nations.
It was also announced that ADNOC had completed the UAE’s first ever direct diesel delivery to Germany in September 2022, and has agreed the terms with Wilhelm Hoyer GmbH & Co. KG to supply up to 250,000 tonnes of diesel per month in 2023.
Dr. Sultan Al Jaber said: "This landmark new agreement reinforces the rapidly growing energy partnership between the UAE and Germany. 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."
"I welcome the signing of the joint declaration of intent on the ESIA. Through ESIA, we enable the swift implementation of strategic lighthouse projects on the focus areas of renewable energies, hydrogen, LNG and climate action," Olaf Scholz said.