During German Chancellor Friedrich Merz’s diplomatic mission to the Gulf region, energy conglomerate RWE announced two significant agreements with United Arab Emirates-based entities, marking a strategic push to broaden Europe’s energy portfolio. The company inked a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC) to deliberate on the supply of up to one million tonnes of liquefied natural gas (LNG) annually for a decade. This volume would account for approximately 1.7% of Germany’s total gas consumption based on 2025 figures, providing a substantial alternative supply route.
Concurrently, RWE entered a separate pact with Emirati renewable energy firm Masdar. This collaboration will investigate the development of large-scale battery energy storage systems, targeting a capacity of up to one gigawatt at RWE’s existing German facilities by 2030. The agreement includes a potential expansion with an additional gigawatt by 2035. These storage solutions are critical for managing the intermittent nature of power generated from wind and solar sources, thereby accelerating the green energy transition.
The move to engage with UAE partners is viewed as a direct response to Europe’s ongoing energy security reassessment, which began with the severance of Russian gas imports following the 2022 invasion of Ukraine. While the United States became a primary alternative supplier, recent geopolitical uncertainties, including statements from former President Donald Trump regarding NATO allies, have underscored the risks of over-reliance on a single partner. Chancellor Merz emphasized the Gulf region’s pivotal role in diversifying Germany’s energy supply chains ahead of his visit.