ADNOC, XRG and SEFE signed a memorandum of understanding to explore joint work across the natural gas and LNG value chain, the three companies said. The agreement was signed during a visit to Germany by Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates.

The memorandum builds on an existing relationship between ADNOC and SEFE, and brings together ADNOC's UAE-based supply with what the companies describe as XRG's international supply nodes across the Midstream & LNG chain.

Four areas of exploration

Under the agreement, the parties will explore potential cooperation in four areas:

  • security of supply, using ADNOC and XRG's combined gas and LNG capabilities to support Germany and Europe
  • market development and growth, and energy market resilience
  • supply chain resilience, including opportunities to invest in and develop energy infrastructure
  • portfolio and shipping optimization, covering cargo movements

Dr Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO and Executive Chairman of XRG, said the two companies are "committed to Germany for the long term." He said ADNOC and XRG have already invested 19 billion euro in the country, and that the UAE this week announced a wider intention to invest a further 40 billion euro in Germany. He said the SEFE agreement opens new opportunities across the gas and LNG value chain.

SEFE chief executive Dr Egbert Laege said the deal brings together XRG's and ADNOC's global supply capabilities with SEFE's market presence, trading expertise, customer relationships and infrastructure access, with the aim of strengthening the resilience of Germany's and Europe's energy systems.

Existing ties in Germany

The agreement builds on ADNOC's record as an LNG supplier to Germany. The company delivered the first cargo of LNG from the Middle East to Germany in early 2023, and has since signed long-term LNG agreements with German customers, alongside piped gas supplied via the Southern Gas Corridor. XRG's existing investments in Germany include Covestro; the companies said the new agreement extends that footprint into the gas and LNG business.

SEFE, which is owned by the Federal Government of Germany, supplies more than 200 TWh of gas and power a year to over 50,000 customers, ranging from small businesses to municipalities and multinational organizations, and employs more than 2,000 people worldwide.