XRG, ADNOC, SEFE to advance opportunities to deliver reliable gas supply to Germany, Europe

XRG, ADNOC, and SEFE Securing Energy for Europe today signed a Memorandum of Understanding to explore opportunities across the natural gas and LNG value chains, reinforcing their shared commitment to delivering reliable and competitively priced energy supply for Germany and Europe.

The agreement was signed during the visit of President Sheikh Mohamed bin Zayed Al Nahyan, to the Federal Republic of Germany. It builds on the existing partnership between the companies and brings together their complementary strengths, leveraging both UAE-based supply from ADNOC and a diverse set of international supply nodes from XRG. This agreement builds on the long-established relationship between ADNOC and SEFE and underscores SEFE’s position as a partner of choice.

Dr. Sultan Ahmed Al Jaber, ADNOC Managing Director and Group CEO and Executive Chairman of XRG, said: “XRG and ADNOC are committed to Germany for the long term. We have already invested €19 billion, and this week the UAE more widely announced the long-term intention to invest a further €40 billion in the country. This agreement with SEFE combines our capabilities and opens new opportunities across the gas and LNG value chain, strengthening energy security and supporting the competitiveness and growth of German industry.”

Dr. Egbert Laege, CEO of SEFE, said: “We are thrilled to deepen our collaboration with such trusted partners as ADNOC and XRG. In today’s energy landscape, closer cooperation across the value chain is critical. By bringing together ADNOC and XRG’s global supply capabilities with SEFE’s market presence, trading expertise, customer relationships and infrastructure access, we aim to enhance the resilience of Germany’s and Europe’s energy systems.”

Under the terms of the agreement, the parties will explore potential collaboration in four areas:

-Security of Supply: Exploring opportunities to strengthen energy security and supply resilience across Germany and Europe by utilizing the combined gas and LNG capabilities of ADNOC and XRG.

-Market Development and Growth: Exploring opportunities to support market development, long-term growth and energy market resilience.

-Supply Chain Resilience: Strengthening supply chain reliability by utilizing complementary assets, infrastructure and capabilities, and exploring opportunities to invest in and develop critical energy infrastructure.

-Portfolio and Shipping Optimization: Identifying opportunities to optimize portfolio management and cargo movements.

The agreement builds on ADNOC’s track record as a reliable LNG supplier to Germany, with the company delivering the first cargo of Middle East LNG to Germany in early 2023. ADNOC has also signed long-term LNG agreements with German customers, alongside piped gas supply via the Southern Gas Corridor.

The agreement expands XRG’s existing strategic footprint in Germany – where it is already a committed investor including through Covestro – extending that commitment into the gas and LNG value chains.