German Energy Giant RWE Signs New Gas Deal As Merz Visits UAE

(MENAFN- Khaleej Times) German energy giant RWE on Friday agreed to explore sourcing liquefied natural gas from the United Arab Emirates' Adnoc, as Europe looks to diversify its energy supply away from the United States.

The two companies signed a memorandum of understanding to look at importing up to one million tonnes of LNG per year for ten years, RWE said, equivalent to about 1.7 percent of Germany's gas consumption in 2025, according to AFP calculations.

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"By establishing new LNG supply agreements, we are strengthening the security of supply for Germany and across Europe," said RWE CEO Markus Krebber.

Germany stepped up imports of LNG from the Middle East and particularly the United States after cutting itself off from Russian natural gas following Moscow's full-scale invasion of Ukraine in 2022.

But fears have grown that it might have swapped one dependency for another as US President Donald Trump has rocked traditional allies with suggestions the United States could annex Greenland, an autonomous territory of Nato ally and EU member Denmark.

Before heading on a trip to the Gulf on Wednesday, German Chancellor Friedrich Merz said the region could help "diversify our oil and gas supply chains".

RWE signed a separate memorandum of understanding with Emirati renewables company Masdar to explore building up to one gigawatt of battery energy storage systems at the German firm's existing sites by 2030, with the possibility of an additional gigawatt by 2035.

Battery storage systems are needed for the green transition, since they store power from intermittent renewable sources that depend on the wind blowing or the sun shining.

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