(MENAFN- Trend News Agency)
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, Trend reports citing
Al
Arabiya .
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 was announced.
The cargo to be delivered this year by ADNOC will be for 137,000
cubic meters 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 percent of the country's gas consumption in
2021, according to data from research firm Enerdata.
“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
energy prices.
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