RWE looks to buy LNG from ADNOC in Germany as it moves to diversify its supply
RWE signed a preliminary agreement with Abu Dhabi National Oil Company on Friday. The German utility stated that it could purchase LNG for European markets as Berlin strives to diversify their energy partners.
The German Chancellor Friedrich Merz has been visiting the Gulf region to look for new energy sources, and to reduce the country's dependency on the United States, its dominant supplier.
RWE is not only a power producer but also a trader of gas and LNG and an energy 'importer.
RWE is exploring the possibility of buying up to 1 million metric tonnes of LNG per year for Germany and other European countries under the framework agreement signed with ADNOC.
Since the 2022 Russian invasion of Ukraine, Germany has been moving away from Russian gas. Norway is its largest gas supplier. The United States supplies almost all of the LNG.
The aggressive trade tactics of U.S. president Donald Trump, his shifting support for Ukraine and his stated desire to seize Greenland (an autonomous territory within Denmark), have all strained relations between Europe, Washington and the United States.
Markus Krebber, CEO of RWE said: "I'm very happy about our strategic partnership with ADNOC. It underscores our commitment to?securing Europe’s energy needs."
Our plans are based on a long-lasting and successful partnership.
Separately RWE has reached an agreement with Masdar, Abu Dhabi’s state-owned renewables energy company to invest jointly in up to two gigawatts?of battery storage project in Germany.
Berlin has grown to be a more important partner in the Gulf region because of its vast resources and capacity for investment.
Merz, after visiting Qatar Thursday, led talks with the United Arab Emirates. He is pushing for deeper ties with Gulf States, with an emphasis on long-term collaboration in energy and technology.
The chancellor stated this week that Germany "needs such partnerships more than ever", as global politics are changing. (Reporting and editing by Linda Pasquini, Joe Bavier and Christoph Steitz)
(source: Reuters)
