ABU DHABI, Sept 25 (Reuters) - German utility RWE
has signed a deal with Abu Dhabi National Oil Company
(ADNOC) to deliver liquefied natural gas to Europe's largest
economy by the end of December, RWE announced on Sunday.
Though the initial amount to be delivered is relatively
small, it's a politically significant deal to shore up supplies
of gas from outside of Russia as Chancellor Olaf Scholz seeks to
deepen ties with the Gulf and find alternative energy sources.
The deal, which includes a memorandum of understanding for
multi-year supplies of LNG, came on the second day of a two-day
trip to the Gulf region by Scholz.
"We need to make sure that the production of LNG in the
world is advanced to the point where the high demand that exists
can be met without having to resort to the production capacity
that exists in Russia," Scholz told journalists before the deal
The cargo to be delivered this year 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 near Hamburg, RWE said.
ADNOC further reserved an unspecified number of LNG cargoes
for Germany in 2023.
Germany's two new planned floating LNG terminals will
eventually be able to receive up to 12.5 billion cubic meters of
LNG a year, equivalent to about 13% of the country's gas
consumption in 2021, according to data from research firm
"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.
German officials hope an array of deals, like the one struck
with Abu Dhabi for LNG, will help take the edge off skyrocketing
Meanwhile, frustrated Germans protested on Sunday, calling
to put into service the halted Nord Stream 2 pipeline project
that was designed to transport fuel from Russia to Germany but
was put on ice after the war in Ukraine broke out.
"Immediately open Nord Stream 2," read one placard.
"Opening Nord Stream 2 = Prevention", read another. Organizers
expected some 5,000 protestors in the city of Lubmin, where the
pipeline lands in Germany.
In addition to supplying RWE, ADNOC has also agreed to sell
ammonia to German companies, including Steag and Aurubis
. It will also provide 250,000 tonnes of diesel a month
to German firm Hoyer.
Earlier on Sunday, the president of the United Arab
Emirates, Sheikh Mohammed bin Zayed al-Nahyan, signed an
agreement with Scholz that covers accelerating energy security
and industrial growth.
Separately, the UAE renewable energy company Masdar will
explore wind energy development off the German coast.
Scholz travelled to Qatar after his meetings in Abu Dhabi.
On Saturday, he held talks in Jeddah with Saudi Arabia's Crown
Prince Mohammed bin Salman.
(Reporting by Andreas Rinke and Moataz Mohamed; Writing by Tom
Sims; Editing by David Evans, Emelia Sithole-Matarise and Toby