Abu Dhabi’s ADNOC has signed agreements with German companies for the supply of LNG and low carbon ammonia, as European nation seek energy supply sources to phase out Russian gas imports in the coming years.
The deal is part of a wider energy security and industry accelerator (ESIA) agreement between the UAE and Germany signed on Sunday during German Chancellor Olaf Scholz’s official visit to Abu Dhabi to accelerate projects of joint interest in energy security, decarbonisation and climate action.
As part of the LNG supply agreement agreement with Germany’s RWE, ADNOC will provide an LNG cargo for delivery in late 2022, to be used in the commissioning of Germany’s floating LNG import terminal at Brunsbüttel.
In addition, ADNOC has reserved a number of further LNG cargos exclusively for German customers in 2023, it added.
Abu Dhabi’s state-owned oil company has also entered into a number of agreements with German customers, including Steag GmbH and Aurubis AG for demonstration cargos of low-carbon ammonia, a carrier fuel for hydrogen that can play a critical role in decarbonising hard-to-abate industry sectors.
The first of these cargoes arrived in Hamburg earlier this month. Under the proposed ESIA, both countries anticipate to explore further opportunities to accelerate growth and collaboration across the hydrogen value chain.
Masdar, UAE’s renewable energy champion, will be actively exploring opportunities in the offshore wind markets in the North Sea and Baltic Sea in Germany that could generate up to 10GW of renewable energy production capacity by 2030 subject to the necessary German policy and regulatory requirements being met between the two nations.
ADNOC this month completed the UAE’s first ever direct diesel delivery to Germany and has also agreed to the terms with Wilhelm Hoyer GmbH & Co. KG (Hoyer) to supply up to 250,000 tons of diesel per month in 2023.
Dr Sultan Al Jaber said: “This landmark new agreement reinforces the rapidly growing energy partnership between the UAE and Germany.”
“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.
