Adnoc and Masdar look at Germany for new energy ventures

• Framework for collaboration on LNG deliveries
• As much as 1 MTPA for up to 10 years
• Masdar and RWE examining battery storage

Abu Dhabi National Oil Company (Adnoc) and Masdar, the emirate’s two biggest energy and renewables companies, have signed preliminary agreements with Germany’s RWE to expand their business reach in Europe.

The pact between Adnoc and RWE sets out a framework for collaboration on liquefied natural gas (LNG) deliveries to Germany and other European markets, amounting to as much as 1 million tonnes per annum (MTPA) for up to 10 years. 

The two companies will also look at working together on LNG trading, regasification capacity in Germany and Europe and wider opportunities across gas and LNG, Adnoc said in a statement.

Masdar and RWE signed a memorandum of understanding to collaborate on identifying and pursuing investments in battery energy storage system (BESS) projects in Germany. 

Masdar will consider investing by 2030 in existing BESS projects owned by RWE, with capacity of up to 1 gigawatt. In addition, they will assess the joint development of new BESS projects of up to 1 GW by 2035. 

The agreements were signed in the presence of UAE President Sheikh Mohamed bin Zayed Al Nahyan and German Chancellor Friedrich Merz.

A UAE-Germany “Energy Security and Industry Accelerator” agreement was inked in September 2022 to accelerate projects of joint interest between the two countries in energy security, decarbonisation and climate action. As part of the initiative, Adnoc entered into an LNG supply agreement with RWE, with further cargos reserved exclusively for German customers in 2023. 

Last month, a joint venture between Masdar and RWE secured contracts for difference — a financial derivative — for its two Dogger Bank South projects in the North Sea in the UK’s latest offshore wind auction.

Masdar has developed and partnered on projects in more than 40 countries. The state-backed company is held 43 percent by Abu Dhabi’s state-owned Taqa, 33 percent by Mubadala and 24 percent by Adnoc.

Further reading:

• Adnoc and Shell sign Ruwais LNG offtake pact
• Adnoc signs 15-year LNG supply deal with IndianOil
• Adnoc signs 15-year supply deal for Ruwais LNG