German Chancellor Friedrich Merz’s visit to Abu Dhabi ended with a slate of MoUs covering energy security, clean power, 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
Gas 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.
Batteries before MW
Clean energy cooperation: Abu Dhabi renewables group Masdar and German energy firm RWE signed an MoU to jointly invest in battery energy storage systems (BESS) in Germany, targeting up to 1 GW by 2035. The tie-up includes an option for Masdar to invest in RWE’s already existing projects by 2030.
The focus is on grid stability — firming intermittent renewables as power demand from industry and data centers rises.
Masdar and RWE are long-time partners: The two are co-owners and operators of the 630 MW London Array offshore wind farm and joint developers of the 3 GW Dogger Bank South project in the UK under a GBP 11 bn investment. Masdar also closed on a 49% stake in RWE’s German 476 MW Baltic Eagle wind farm in 2024.
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, 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.
On a lighter note
Beyond energy and industry, the two sides also exchanged an MoU between the UAE Pro League and the German football league, the Bundesliga, a smaller but symbolic step toward expanding cooperation into institutional and people-to-people channels.
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.