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:

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.