UAE and Germany hard-wire LNG, energy cooperation

German Chancellor Friedrich Merz’s visit to Abu Dhabi ended with a slate of MoUs covering energy security and industrial supply chains. The visit comes as Germany reportedly looks to diversify its energy supply options. Here’s what was covered:

LNG and energy security

G anchored the talks: Abu Dhabi National Oil Company (Adnoc) and Germany’s utility RWE agreed to explore providing an LNG supply of up to 1 mtpa for as long as 10 years for Germany and wider European markets. The framework also covers LNG trading and Germany’s regasification capacity.

The agreement builds on existing LNG links: Adnoc already has 1.6 mtpa of LNG from its Ruwais project earmarked for German buyers and is supplying a further 0.7 mtpa from legacy facilities until Ruwais comes online. As we’ve previously reported, Adnoc’s Germany LNG track record includes:

• A 15-year 0.6 mtpa LNG agreement with Energie Baden-Württemberg;
• A 1 mtpa sales and purchase agreement with SEFE for Ruwais LNG and another with SEFE for LNG from Adnoc’s Das Island facility;
• A Joint Declaration of Intent on Sustainable Energy Cooperation signed in 2024.

IN CONTEXT- Germany is diversifying its LNG portfolio to reduce over-reliance on a single supplier and to shield itself from tariff weaponization by the US, which currently accounts for around 96% of LNG flowing through German terminals, Reuters reports.

Industry and materials: Ammonia enters the mix

Industry followed energy: Covestro, a German maker of high-performance polymers, the UAE-based and Adnoc-backed urea and ammonia producer Fertiglobe, and Adnoc and ADQ’s JV Ta’ziz signed an MoU to explore cooperation in ammonia and sustainable materials, state news agency Wam reports.

The timing matters: Adnoc’s international investment arm XRG completed a EUR 14.7 bn takeover of Covestro last year, with this latest MoU pointing to a tighter bilateral link across industry and low-carbon materials.

Why it matters

The visit signals a targeted effort to lock in near-term LNG flexibility, scale grid storage, and link German industry to lower-carbon materials. It positions the UAE as a practical partner as Germany rewires its energy and supply-chain architecture.