The price of cooking gas may not come down soon as the European Union (EU) enter into serious talks with Nigeria to sustain Liquefied Natural Gas (LNG) supply to Europe. This is as tensions heightened over face-off between Russia and Ukraine.
European gas prices remain at sustained highs and Nigeria’s LNG supplies to Europe stood at 23.3 billion cubic meters, Bcm in 2021
Nigeria and the EU are to look at “all options” for increasing the supply of Nigerian LNG to Europe, as Brussels continues its push to engage with its gas supply partners amid the standoff between Russia and the West over Ukraine.
Concern over Russian gas supply to Europe has seen the European Commission make significant diplomatic efforts in recent weeks to seek additional gas deliveries from alternative suppliers.
EC executive vice-president Margrethe Vestager on February 14 in Abuja had important discussions with vice president Yemi Osinbajo, with LNG supplies high on the agenda.
“The importance of the energy relationship between Nigeria and the EU featured, while consideration of all options for increased supply of LNG from Nigeria to the EU was agreed to, following a request from the EU,” Osinbajo said.
“A technical meeting on this will be convened shortly,” it said.
Osinbajo was also quoted as saying that Nigeria was “relieved” to hear of the EU’s support on gas as a transition fuel.
Nigeria is a key LNG supplier to Europe and in 2021 exports amounted to 12.63 Bcm, according to data from S&P Global Platts Analytics.
The biggest buyers were Spain with 49 cargoes supplied or 4.3 Bcm of gas equivalent France (38 cargoes), Portugal (34 cargoes), and Turkey (15 cargoes), the data showed.
Several LNG cargoes were also delivered last year each to Croatia, Greece, Italy, the Netherlands, and the UK.
Nigeria’s six-train LNG export facility has a capacity of 22.5 million mt/year (31 Bcm/year), but it is being expanded to 30 million mt/year with the addition of a seventh train.
Total LNG exports from Nigeria in 2021 were 23.3 Bcm, according to Platts Analytics data, well below capacity and down from 28.7 Bcm exported in 2020.
