RWE signed a provisional agreement on Friday with Adnoc that could see Germany’s largest utility purchase liquefied natural gas for European markets, as Berlin steps up efforts to diversify its energy partners.
German Chancellor Friedrich Merz is touring Gulf states in search of new energy sources and to reduce dependence on dominant suppliers − including the US.
Beyond its core power generation business, RWE, whose largest shareholder is Qatar, is also a major importer and trader of gas and LNG. Under the framework agreement with Adnoc, the company will explore buying up to 1 million tonnes of LNG annually for as long as a decade for Germany and other European markets.
Berlin has been shifting away from Russian gas since Moscow’s 2022 invasion of Ukraine. Norway is now its biggest pipeline supplier, while the US provides the bulk of its LNG. Relations between Europe and Washington, however, have been strained by President Donald Trump’s aggressive trade tactics, wavering support for Ukraine and stated desire to take over Greenland, an autonomous Danish territory.
“I am very pleased about our strategic collaboration with Adnoc, which underscores our shared commitment to securing Europe’s energy needs,” RWE chief executive Markus Krebber said, adding that the plans build on a long-standing partnership.
Separately, RWE agreed with Abu Dhabi renewable energy group Masdar to jointly invest in up to 2 gigawatts of battery storage projects in Germany.
"Germany is an important market for Masdar as we progress toward our target of 100 gigawatts of capacity worldwide by 2030 and we look forward to building on our already powerful partnership with RWE to support energy transformation in Germany and across Europe," said Mohamed Jameel Al Ramahi, CEO of Masdar.
The Gulf, with its vast energy resources and investment capacity, has become an increasingly important partner for Berlin. After talks in the UAE, following a visit to Qatar, Mr Merz said Germany needs “such partnerships more than ever” as global politics shift.
