XRG, ADNOC and SEFE sign MoU to secure gas and LNG supply for Germany and Europe
- XRG, ADNOC and SEFE signed a Memorandum of Understanding to explore opportunities across the gas and LNG value chains.
- The parties will explore cooperation in four areas: security of supply, market development, supply-chain resilience and portfolio/shipping optimisation.
- ADNOC said it has already invested €19 billion and cited the UAE's intention to invest an additional €40 billion in Germany.
- ADNOC delivered the first Middle East LNG cargo to Germany in early 2023 and holds long-term LNG and piped gas agreements via the Southern Gas Corridor.
Deal overview
XRG, ADNOC and SEFE Securing Energy for Europe signed a Memorandum of Understanding to explore opportunities across the natural gas and LNG value chains, aimed at delivering reliable and competitively priced energy supply for Germany and Europe. The agreement was signed during the visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan to Germany and builds on existing partnerships among the companies.
Scope of collaboration
Under the terms of the MoU the parties will explore potential collaboration in four areas: security of supply, market development and growth, supply-chain resilience including investment in critical energy infrastructure, and portfolio and shipping optimisation to improve cargo movements and portfolio management.
Context and track record
The agreement leverages ADNOC's UAE-based LNG supply and XRG's international supply nodes while expanding XRG's strategic footprint in Germany, where it already invests through Covestro. ADNOC noted prior investments of €19 billion and referenced the UAE's stated intention to invest a further €40 billion in Germany. ADNOC delivered the first Middle East LNG cargo to Germany in early 2023 and has signed long-term LNG and piped gas supply agreements with German customers, including via the Southern Gas Corridor.
Source: XRG