Adedapo Adesanya
By Adedapo Adesanya
Portugal could face supply problems this winter if Nigeria, its key export partner for the commodity, does not deliver all the liquefied natural gas (LNG) as and when due.
This warning was made by the European Union country’s environment and energy minister, Mr Duarte Cordeiro, on Monday.
Europe has been trying to wane itself of Russian gas after the country attacked Ukraine in February. One such opportunity is to look for alternatives or boost supply from key markets, in Portugal’s case, Nigeria.
Mr Cordeiro said that even though there was a chance that Nigeria might not meet its LNG supply volumes, the Nigerian government had given its assurances that it would do so.
Speaking at a conference in Lisbon hosted by CNN Portugal on Monday, he noted that “there is a risk of it not complying”.
“From one day to another, we may have a problem, such as not being supplied the volume of gas that is planned,” Mr Cordeiro said.
Although Portugal has its gas reserves at 100 per cent of storage capacity, Mr Cordeiro said that if fewer Nigerian LNG deliveries materialised, it would have to look for alternative supplies.
With other European countries doing the same, this would likely lead to higher imported gas prices, he said.
Portugal last year imported 2.8 billion cubic meters of LNG from Nigeria, or 49.5 per cent of total imports, while the United States was the second-largest supplier with a share of 33.3 per cent.
Its other suppliers include Trinidad and Tobago, Algeria, Qatar, and Russia, the latter accounting for just 2 per cent last year.
Oil and gas output in Nigeria has been throttled by theft and vandalism of pipelines, leaving Nigeria LNG (NLNG) Limited’s terminal at Bonny Island operating at 60 per cent capacity.
Portugal is seeking to diversify its suppliers to increase the country’s energy security, Mr Cordeiro said, adding that it is adopting strategies to lower gas consumption while boosting its already high electricity production through renewables.
