ADNOC and RWE sign deal on LNG delivery to floating terminal in Germany

Abu Dhabi National Oil Company (ADNOC) has signed a deal to deliver liquefied natural gas (LNG) to German energy company RWE by the end of December, the companies have announced. RWE also signed an agreement with Masdar, Abu Dhabi’s flagship renewable energy company, on cooperation in offshore wind.

The announcements came during a weekend visit by German Chancellor Olaf Scholz to the UAE and other Gulf states to secure energy pacts for Europe’s biggest economy.

The ADNOC and RWE agreement will ensure the first delivery of an LNG cargo to Elbehafen LNG at Brunsbüttel, near Hamburg, in Germany. Elbehafen LNG will operate one of the two Floating Storage and Regasification Unit (FRSU), that RWE chartered on behalf of the German government.

The cargo is expected to be shipped from Das Island, Abu Dhabi and to arrive in Germany in late December 2022, the companies said. The cargo delivered by ADNOC will be for 137,000 cubic metres of LNG and will be the first LNG to be supplied to the German gas market via the floating LNG import terminal at Brunsbüttel.

This marks an important milestone in building-up an LNG supply infrastructure in Germany and setting-up a more diversified gas supply, RWE said in a statement. ADNOC also reserved a number of further LNG cargos exclusively for German customers in 2023, according to UAE state news agency WAM.

The ADNOC and Masdar deals are part of a wider agreement between the UAE and Germany signed on Sunday to accelerate projects of joint interest in energy security, decarbonisation and climate action. Under the new Energy Security and Industry Accelerator (ESIA) agreement, the UAE and Germany will explore further opportunities to accelerate growth and collaboration across the hydrogen value chain.

The energy deal was signed by His Excellency Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, UAE Special Envoy for Climate Change and Managing Director and Group CEO of ADNOC, and Dr Franziska Brantner, Germany's Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Climate Action, in the presence of President His Highness Sheikh Mohamed Bin Zayed Al Nahyan and Chancellor Scholz.

“This landmark new agreement reinforces the rapidly growing energy partnership between the UAE and Germany,” Dr Sultan Al Jaber said. “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,” he added.

RWE’s memorandum signed with Masdar will focus on jointly exploring the potential to grow their portfolios in offshore wind in key global markets. Under the MoU, the two companies will evaluate opportunities in a number of countries.

“The signing of our first LNG agreement with a German customer, builds upon the longstanding bilateral relationship between the UAE and Germany. As a customer-focused business, ADNOC is accelerating its gas production and processing capacity to meet growing global demand for LNG, a key fuel, both in today’s energy mix, and a critical fuel in the energy transition. In addition, Masdar, the UAE’s renewable energy and green hydrogen powerhouse, signed important agreements with RWE to pursue collaboration in a number of offshore wind projects, supporting our broader efforts to grow renewable energy capacity and meet the world’s clean energy needs,” Dr Sultan said.

Dr. Markus Krebber, CEO of RWE AG, said in his comments: “As RWE, we are committed to actively support the German government to make energy supply as secure as possible. I am all the more delighted to announce our agreement with ADNOC on the first LNG cargo to be shipped to our floating LNG terminal in Brunsbüttel and our MoU for further LNG deliveries into Germany… I am very pleased that we will join forces with Masdar, a known and reliable partner to RWE for years in our London Array offshore wind farm. Together we will explore the potential for widening the scope of our partnership in offshore wind to further projects.”