Portugal is looking to diversify its liquefied natural gas (LNG) supplies, shifting its focus to Nigeria and the United States amid a shortage of LNG from Russia. The move comes as a result of sanctions imposed on Russian products by the European Union following the Kremlin's declaration of war on Ukraine.

According to Maria da Graca Carvalho, Portugal's environment minister, the country aims to reduce its dependence on Russian gas, with Nigeria and the US emerging as key alternatives. In 2024, Portugal imported 49,141 gigawatt-hours (GWh) of natural gas, with around 96% of that amount being LNG. Of this, approximately 40% came from the US, 4.4% from Russia, and 51% from Nigeria.

This marks a significant shift from 2021, when Russia accounted for 15% of Portugal's LNG supplies. The sanctions have led to a dwindling of Russian supplies, prompting Portugal to explore other options. "Portugal is now practically independent of Russian gas ... but we want to reduce this figure further by importing more gas from Nigeria and the United States," Graca Carvalho stated at the World Economic Forum in Davos.

Nigeria's LNG trade is on an upward trajectory, with the country producing 2.5 trillion cubic feet of gas in 2024, generating approximately N8.6 trillion in revenue. According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria generated 1.44 trillion cubic feet of associated gas and 1.06 trillion cubic feet of non-associated gas during the same period. However, 192.89 billion standard cubic feet of gas were flared in 2024, while 2.31 trillion TCF of gas was used.

The Nigerian government has set ambitious targets to increase gas production, aiming to grow from 7.5 billion cubic feet per day to 12 billion cubic feet per day. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), revealed that increasing gas production and transforming Nigeria into a gas economy will be the main priorities in his second year in office.

The shift in Portugal's LNG supplies has significant implications for the global energy market. As European countries continue to diversify their energy sources, Nigeria and the US are emerging as key players in the LNG market. This trend is likely to continue, driven by the need for energy security and reduced dependence on Russian supplies.

In conclusion, Portugal's move to reduce its dependence on Russian LNG supplies marks a significant shift in the global energy landscape. As the country turns to Nigeria and the US for increased supplies, it underscores the importance of diversifying energy sources and reducing reliance on a single supplier. This trend is likely to continue, shaping the future of the global energy market.