As it gets ready for future Russian supply cuts, the European Union is looking to Nigeria for additional gas supplies, according to Matthew Baldwin, deputy director general of the European Commission’s energy division, on Saturday.
This week, Baldwin met with representatives of the continent’s largest oil producer while in Nigeria.
He was informed that Nigeria was enhancing Niger Delta security and intended to reopen the Trans Niger pipeline after August, which would result in more gas supplies to Europe.
Baldwin told reporters by phone that there is potential to more than quadruple the 14% of LNG that the EU now imports from Nigeria.
The theft and vandalism of pipelines in Nigeria are stifling oil and gas production, with the Bonny Island terminal of gas producer Nigeria LNG Ltd. only working at 60% of its potential.
At that point, Baldwin said, “there might be additional LNG that could be available for spot cargoes to travel to Europe.” Baldwin: “If we can get up to beyond 80 percent.”
“Come and talk to us again at the end of August because we think we can achieve significant progress on this,” the Nigerian officials told us.
State-owned oil corporation NNPC Ltd., Shell, TotalEnergies, and Eni are the owners of Nigeria NLG.
On Wednesday, the European Commission urged EU members to reduce their gas consumption by 15% from August to March. The aim would initially be optional, but if the Commission declared an emergency, it would become required.
Nigeria shipped 23 billion cubic meters (bcm) of gas to the EU last year, but the amount has been dropping over time. According to Baldwin, the bloc purchased 36 bcm of LNG from Nigeria in 2018.
