As Russia squeezes supply, Germany inks deal with UAE for gas and diesel

Germany on Sunday signed a deal with the United Arab Emirates which will supply liquefied natural gas and diesel. The “energy security” agreement has been signed by both countries as Germany urgently searches for energy sources to replace Russian supplies.

Emirati industry minister Sultan Ahmed Al Jaber termed the deal a “landmark new agreement”. He said that the deal “reinforces the rapidly growing energy partnership between the UAE and Germany”. The signing of the deal was witnessed by German Chancellor Olaf Scholz who is on a visit to UAE. He has met Emirati President Sheikh Mohamed bin Zayed Al-Nahyan.

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, the statement added.

UAE state oil company ADNOC completed its first ever direct diesel delivery to Germany earlier this month, and will “supply up to 250,000 tons of diesel per month in 2023”, it said.

The German leader is touring the Gulf in the hope of sealing new energy deals to replace Russian supplies and mitigate the energy crisis resulting from Moscow’s invasion of Ukraine.

On Saturday, Scholz metwith Saudi Crown Prince Mohammed bin Salman in Jeddah, and later Sunday he was due to fly to gas-rich Qatar to hold talks with Emir Sheikh Tamim bin Hamad Al-Thani.