German distributor RWE has signed an agreement with Abu Dhabi National Oil Company (ADNOC) to ship liquefied natural gas (LNG) to Germany by the end of December, RWE announced on Sunday.
While the initial amount to be delivered is relatively small, the move is a politically significant deal to bolster gas supplies from outside Russia as German Chancellor Olaf Scholz seeks to deepen ties with the Gulf and find sources. energy alternatives.
The agreement, which includes a memorandum of understanding for multi-year LNG supplies, comes on the second day of a two-day trip by Scholz to the Gulf region.
“We need to ensure that the world’s LNG production advances to the point where existing high demand can be met without having to draw on existing production capacity in Russia,” Scholz said.
The cargo to be shipped this year by ADNOC — Abu Dhabi’s National Oil Company — will be 137,000 cubic meters of LNG and will be the first LNG supplied to the German gas market through the floating LNG import terminal in Brunsbüttel, near Hamburg, RWE said.
ADNOC has also reserved an unspecified number of liquefied natural gas shipments for Germany in 2023.
Germany’s two new floating LNG terminals in planning will be able to receive up to 12.5 billion cubic meters of LNG per year, equivalent to about 13% of the country’s gas consumption in 2021, according to data from research firm Enerdata.
“This represents an important milestone in building an LNG supply infrastructure in Germany and generating a more diversified gas supply,” RWE said.
German officials hope a series of deals, such as the one with Abu Dhabi, will help ease high energy prices.
In addition to supplying RWE, ADNOC also agreed to sell ammonia to German companies, including Steag and Aurubis. The company will also supply 250,000 tonnes of diesel per month to the German firm Hoyer.
Earlier on Sunday, UAE President Sheikh Mohammed bin Zayed al-Nahyan signed a deal with Scholz that covers accelerating energy security and industrial growth.
Separately, UAE-based renewable energy company Masdar will explore wind power development off the German coast.
Scholz traveled to Qatar after meetings in Abu Dhabi. On Saturday, he held talks in Jeddah with Saudi Arabia’s Crown Prince Mohammed bin Salman.
Source: CNN Brasil