EU intend to increase the supply of Nigerian LNG to Europe
Nigeria is the largest African oil producer and the 2nd largest gas producer. The construction of a 7th LNG train of 8 Mt/year started in June 2021
European Commission vice president Margrethe Vestager met Feb. 14 with Nigerian vice president Yemi Osinbajo.
The parties discussed trade, investments and the prospect of increasing Nigerian LNG supplies to the EU.
According to Osinbajo´s press office:
The importance of the energy relationship between Nigeria and the EU was discussed
while a consideration of all options for increased supply of LNG from Nigeria to the EU was agreed to, following a request from the EU
A technical meeting on this will also be convened shortly
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.
Osinbajo welcomed the EC’s recent proposal to consider gas as a sustainable investment in its taxonomy:
We are relieved to hear of the EU’s support on gas as a transition fuel
It’s some bit of relief
Nigeria LNG Limited (NLNG) is considered one of the most important economic projects in the country.
Since it began operations in 1999 when it shipped its 1st LNG cargo, NLNG has brought significant economic benefits to Nigeria.
The company has 16 long-term Sale and Purchase Agreements (SPAs) with 10 buyers and controls about 6 % of global LNG trade.
Nigeria has an LNG export capacity of 22.5 mln metric tons/year, but this is due to rise to 30 mln mt/yr, once a 7th train at the NLNG complex comes online in 2023-24.
The country is expected to have 100 oil & gas projects commencing operations across the value chain between 2021 and 2025, accounting for 23% of the total project starts in Africa.