Berlin. The visit to Germany by Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates (UAE), ended on Friday with a series of investment announcements and agreements. Cooperation in the energy sector plays an important role. But there are hurdles.
The federally owned gas importer Sefe concluded a declaration of intent with Adnoc, the Emirates' state-owned energy and chemicals company, and XRG. XRG is Adnoc's international investment company. The statement from the three companies states that they want to “explore cooperation opportunities along the natural gas and LNG value chain”.
However, the current regulations of the European Union (EU) represent an obstacle to cooperation. Rainer Seele, President Global Chemicals at
The EU Methane Regulation aims to reduce climate-damaging methane emissions along the gas and oil value chain. Gas and oil producers will initially be required to record emissions.
Violations can result in severe penalties. Major liquefied natural gas (LNG) producers such as the US and Qatar have already said they do not want to be subject to EU regulation.
The EU Commission wants to prevent a complete suspension of the regulation. Instead, she suggests not initially imposing penalties for violating the regulation.
Seele is convinced that this doesn't go far enough: "Suspension of the regulation is not enough. It must be completely removed from the agenda."
In addition, the XRG manager is convinced that Europeans must commit to long-term supply contracts: "Long-term supply contracts are essential. Only with long-term supply contracts can investments worth billions be justified."
The topic is controversial in the EU. Critics of long-term supply contracts argue that contracts with terms of 15 or 20 years stand in the way of Europe's climate goals and reinforce dependence on fossil fuels.
Seele, however, emphasized the importance of the declaration of intent that has now been concluded: "We are very interested in working closely with Sefe. We have proven that we view Germany as an important partner with the takeover of Covestro. It is by far XRG's largest single investment." XRG completed the takeover of the German polymer and plastics manufacturer at the end of 2025.
Seele said XRG aims to become a relevant global player in the LNG market. "We cover the entire LNG value chain and attach importance to diversification. We are pushing forward projects in the USA, Mozambique and Argentina, among others," he explained.
In his opinion, Sefe can benefit from this diversification. Seele emphasized: “We are talking about relevant LNG quantities that are not yet under contract.”
Seele did not comment on speculation that XRG was interested in joining Sefe. The federal government took over Sefe in the wake of the gas supply crisis in 2022.
The EU Commission had stipulated that the company be privatized by the end of 2028. The federal government may retain a maximum of 25 percent plus one share.
The agreement between Sefe, Adnoc and XRG is one of a series of collaborations between Germany and the UAE announced during the state visit. Chancellor Friedrich Merz spoke of a “powerful signal”.
The UAE announced an investment package totaling 40 billion euros in Germany. Cooperation in the areas of economy, energy, environment, defense and defense technology should be expanded.
