UAE Energy Giants Adnoc, XRG, and Masdar Forge Multi-Billion Euro Partnerships with German Firms

Adnoc, XRG and Masdar announced a series of strategic agreements with German companies on Friday, spanning liquefied natural gas (LNG), renewable energy, advanced materials, and technology.

According to an Adnoc press release, these deals could potentially unlock over €5 billion in investments. The agreements were officially signed during the state visit of President Sheikh Mohamed to Germany, a move designed to further solidify the bilateral partnership between Germany and the UAE.

The announcement follows earlier news this week regarding €40 billion in planned long-term UAE investments within the country. On Thursday, President Sheikh Mohamed emphasized that the UAE regards its relationship with Germany as a enduring alliance founded on more than 50 years of mutual cooperation, trust, and shared interests.

As part of the agreements, Adnoc and Germany's RWE Supply & Trading signed a letter of intent to pursue up to two long-term LNG sales agreements. Supplies originating from Adnoc Gas and XRG’s expanding portfolio could potentially commence in the early 2030s, with deliveries targeted for Germany, Europe, and Asian customers.

Additionally, Adnoc, XRG and Germany’s SEFE established an agreement to investigate cooperation across natural gas and LNG supply chains, encompassing supply, infrastructure, and logistics. Meanwhile, TA’ZIZ and chemicals company Covestro finalized an agreement for a feasibility study centered on a large-scale methylene diphenyl diisocyanate production chain in Ruwais.

In the renewables sector, Masdar and RWE agreed to examine joint participation in upcoming German offshore wind auctions. Concurrently, Masdar and investment manager Luxcara will evaluate joint investments directed at offshore wind and battery storage projects throughout Germany and Europe.

Additional agreements involving Bosch Middle East, Siemens Energy and Siemens Industrial will focus on exploring collaboration opportunities in artificial intelligence and advanced technology.

These developments were revealed alongside the inauguration of the UAE-Germany Investment Council, established to identify and pursue investment opportunities across priority sectors. Adnoc, XRG and Masdar noted that they have already poured more than €20 billion into Germany’s energy and industrial sectors.