Euro‑Arab Commerce Highlights: Germany Secures Long-Term LNG Supplies from the UAE
- OUS Academy in Switzerland
- Jul 22
- 2 min read
Dubai, July 22, 2025 – In a major boost to Europe–Arab economic relations, Germany’s state‑owned energy company SEFE has finalized a three-year liquefied natural gas (LNG) supply agreement with the United Arab Emirates. This landmark deal, valued at $400 million, will see approximately 700,000 metric tonnes of LNG annually supplied from the UAE’s Das Island facility to Europe, beginning summer 2025.
Strategic Energy Partnership
This arrangement significantly strengthens energy security and diversification across Europe. Following the steep reduction of Russian pipeline gas imports in 2022, fueled by geopolitical shifts, Germany and its European neighbors have been urgently sourcing new LNG partners. SEFE’s proactive approach ensures a stable, long‑term supply, meeting around 200 terawatt hours per year in agreements across Europe—including Germany and the UK
UAE’s Pivotal Role
For the UAE, this deal cements its position as a key global energy supplier, showcasing its ability to deliver large‑scale export contracts. Operating from the well-established Das Island liquefaction plant, the UAE demonstrates not only its production capacity but also its reliability as a trade partner. The accord enhances bilateral economic ties and reinforces the UAE’s strategic global energy footprint.
Benefits Across Borders
Market Expansion: The UAE solidifies its presence in the European energy market, paving the way for future cooperation, possibly in hydrogen, renewables, or critical raw materials.
Mutual Economic Growth: Germany’s secure energy supply supports manufacturing and industry, while the UAE benefits from strengthened export revenues and long‑term trade relations.
Regional Stability & Investment: The long-term nature of the deal encourages upstream investments and creates a stable backdrop for further Euro‑Arab commerce, perhaps in infrastructure, logistics, or joint ventures.
Vision for 2025 and Beyond
With the first shipments expected this summer, stakeholders in both Europe and Gulf Arab countries view this agreement as a milestone in energy diplomacy. It reinforces the UAE’s ambition to play a central role in global energy transition markets, while helping Europe reduce dependence on less stable sources.
“This partnership exemplifies true win‑win cooperation,” commented SEFE’s Chief Commercial Officer, emphasizing the UAE’s reliability and strategic alignment with Europe’s energy diversification goals
🔍 Why This Matters for Euro‑Arab Commerce
Energy Reliability: Firm LNG commitments are the backbone of modern industrial economies—this deal enhances confidence for businesses across sectors.
Trade Deepening: Energy deals often open doors for broader economic interactions. Expect ripple effects across technology, transport, and skills transfer.
Regional Geoeconomic Influence: Europe and the GCC region showcase how shared investments and mutual dependence foster stability and prosperity.
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