UAE Negotiating Deal To Send 6 Additional LNG Cargoes To Germany

UAE Negotiating Deal To Send 6 Additional LNG Cargoes To Germany
ADNOC is finalizing a deal to deliver six LNG shipments to Germany next year, people with direct knowledge of the matter said.

(Bloomberg) -- Abu Dhabi National Oil Co. is finalizing a deal to deliver six liquefied natural gas shipments to Germany next year, people with direct knowledge of the matter said.

The extra cargoes will be in addition to the first delivery to be made as soon as December for the commissioning of RWE AG’s floating import terminal in Brunsbuettel near Hamburg, according to the people who asked not to be identified as a matter is private.

Germany is seeking new sources of gas after the government secured five floating LNG import plants to help ease dependency on Russian fuel and ease an unprecedented energy price crunch. The deal will help secure supplies in Europe’s biggest economy which is struggling to replace reduced Russian flows. German Chancellor Olaf Scholz, during his tour of Mideast last weekend secured just one cargo, while penciling in more deliveries for next year.

The first cargo -- 137,000 cubic meters -- will be delivered by Adnoc to RWE’s Brunsbuettel terminal as soon as late December or by early 2023.

“Further cargoes are planned, but the exact number is not yet clear,” a spokesperson for Germany’s economy ministry said. “Talks are ongoing.” Adnoc declined to comment, and RWE wasn’t immediately available.

The buyer and the delivery terminal for the six additional cargoes next year were not immediately clear.

The German government last month struck a deal with RWE and another utility, Uniper SE, to arrange temporary supplies of LNG through two new terminals. The facility at Brunsbuettel is set to start up by the end of the year, according to RWE. Construction of the Wilhelmshaven terminal - led by Uniper - has begun and operations are expected this winter, Uniper has said.

The UAE plans to more than double its LNG export capacity as it seeks to build a new production plant by 2027. Adnoc is also building up its LNG trading operations.

 

--With assistance from Vanessa Dezem, Petra Sorge and Paul Wallace.



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