Portugal has announced plans to expand its imports of liquefied natural gas (LNG) from Nigeria and the United States, aiming to end its reliance on dwindling Russian supplies. This move reflects a broader shift in global energy markets as countries seek to reduce dependence on volatile sources while bolstering energy security. The announcement was made by Portugal’s Environment Minister Maria da Graça Carvalho during the World Economic Forum in Davos, underscoring the urgency of energy diversification in the face of ongoing geopolitical tensions.
In 2024, Portugal imported 49,141 gigawatt-hours (GWh) of natural gas, with an overwhelming 96% of that figure consisting of LNG, according to data from electricity and gas grids operator REN. Nigeria emerged as Portugal’s largest LNG supplier, providing 51% of the country’s imports, followed by the United States at 40%. Russian imports, once significant, accounted for a mere 4.4%. This marks a significant departure from 2021, when Russia supplied 15% of Portugal’s LNG.
The decline in Russian imports is a direct result of the European Union’s response to Russia’s invasion of Ukraine in February 2022. While the EU imposed strict sanctions on Russian oil and gas transported through pipelines, it did not extend these measures to LNG transported by sea, allowing limited imports to continue. However, Portugal has proactively reduced its reliance on Russian gas and is now looking to eliminate it entirely by increasing imports from more stable and reliable partners like Nigeria and the United States.
Maria da Graça Carvalho emphasized that Portugal is now “practically independent of Russian gas” but remains committed to reducing the figure further. Speaking at the Davos panel, Carvalho highlighted the importance of cooperation within the European Union to enhance energy independence and security. She pointed out that the Iberian Peninsula, comprising Portugal and Spain, remains an “energy island” due to difficulties in building interconnections with France. This lack of infrastructure has historically isolated the region’s energy markets, making diversification and increased LNG imports a strategic priority.
Portugal’s focus on Nigeria as a key LNG supplier comes at a pivotal time for both nations. Nigeria, as Africa’s largest LNG exporter, stands to gain significantly from the increased demand. The partnership not only boosts Nigeria’s economy but also strengthens its position as a crucial energy partner for Europe. With its abundant natural gas reserves and strategic geographical location, Nigeria is well-placed to meet Portugal’s growing energy needs while supporting the broader European Union in reducing its reliance on Russian energy sources.
The United States is also playing a significant role in this energy transition. Over the past decade, the U.S. has emerged as a leading global exporter of LNG, with its abundant shale gas reserves enabling it to meet rising international demand. Former U.S. President Donald Trump had previously urged European nations to increase their purchases of U.S. energy, warning of potential tariffs if they failed to do so. While the Biden administration has taken a more diplomatic approach, energy exports remain a key element of U.S.-EU relations, and Portugal’s increased imports underscore the strengthening ties between the two regions.
This shift in Portugal’s energy strategy is part of a broader trend within the European Union. Following Russia’s aggressive actions in Ukraine, EU member states have prioritized energy diversification to reduce vulnerability to supply disruptions. Countries across the continent are investing in LNG infrastructure, forging new partnerships with stable suppliers, and accelerating the transition to renewable energy sources. Portugal’s decision to increase LNG imports from Nigeria and the United States sets an example for other nations seeking to achieve greater energy independence.
The benefits of this partnership extend beyond energy security. Increased LNG exports from Nigeria will drive economic growth, create jobs, and provide a stable revenue stream for the West African nation. For Portugal, securing reliable energy supplies from trusted partners ensures long-term stability and reduces exposure to geopolitical risks.
As global energy markets continue to evolve, the strategic alignment between Portugal, Nigeria, and the United States demonstrates the importance of international cooperation in addressing energy challenges. By diversifying its energy sources and reducing reliance on Russia, Portugal is not only safeguarding its energy future but also contributing to a more secure and sustainable global energy landscape.
Stay ahead of the curve with in-depth reporting and exclusive insights into the stories that matter most. Sign up today at TrendingNaijaNews.com, your trusted source for reliable and engaging news from Nigeria and around the world. Don’t just follow the news—be part of it!