UAE agrees to supply gas, diesel to Germany under landmark energy accord

United Arab Emirates (UAE) on Sunday announced that it has struck the "energy security" deal with Germany to supply liquefied natural gas (LPG) and diesel as the European nation has been struggling to replace the Russian energy exports. In a statement on Sep 25, Emirati industry minister Sultan Ahmed Al Jaber stated that the United Arab Emirates (UAE) has reached a landmark accord that will bolster the energy cooperation between the two nations.

A new 'landmark' partnership

The new "landmark agreement reinforces the rapidly growing energy partnership between the UAE and Germany", said the UAE's Al Jaber at a presser on Sunday. German Chancellor Olaf Scholz, as well as UAE President Sheikh Mohammed bin Zayed Al Nahyan, were both present at the signing ceremony, UAE's state news agency WAM reported. The UAE government revealed in a statement, that as part of the deal, the UAE will provide "an LNG cargo for delivery in late 2022, to be used in the commissioning of Germany's floating LNG import terminal at Brunsbuettel", a North Sea port. 

United Arab Emirates Presidential Court photo shows Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE right, and German Chancellor Olaf Scholz, posing for a photo prior to a meeting at Al Shati Palace in Abu Dhabi, UAE. Credit: Abdulla Al Neyadi/UAE Presidential Court via AP

"ADNOC has reserved a number of further LNG cargos exclusively for German customers in 2023," the statement from the UAE government read. 

The energy deal was signed during German Chancellor Olaf Scholz's Gulf tour aimed at finding an alternative energy source to cut the Russian energy reliance and mitigate the energy crisis wreaked on Europe due to the war in Ukraine. Olaf met with the UAE President Sheikh Mohammed bin Zayed Al Nahyan in Jeddah, he also met with Saudi Crown Prince Mohammed bin Salman (MBS) after he arrived in Qatar. The German Chancellor Sholz also held talks with Emir Sheikh Tamim bin Hamad Al-Thani.  

Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, standing right, and German Chancellor Olaf Scholz, witness the signing of a New Energy Security and Industry Accelerator agreement. Credit: AP

In the UAE, the German Chancellor took a tour of the environmental project at a mangrove park with Emirati climate change minister Mariam Almheiri. He also reportedly discussed the issue of energy security as well as the "climate action and economic growth. Olaf Scholz landed in Saudi Arabia on Sep 24 where he was accompanied by a large Saudi delegation. The German Chancellor was received at the Jeddah airport by Prince Khalid Al Faisal, Governor of the Makkah region, and Finance Minister Mohammed Al Jadaan, according to the Saudi Press Agency (SPA). His Gulf visit was aimed at strengthening the energy partnerships with Gulf states as Europe has been reeling under the devastating impact of the war waged by Russia in Ukraine.

In this photo released by Saudi Press Agency, SPA, Saudi Crown Prince Mohammed bin Salman, right, receives Chancellor Olaf Scholz, Saturday, Sept. 24, 2022, in Jeddah, Saudi Arabia. Credit: AP/ Saudi Press Agency