Tuesday, 20 September 2022 04:05

Portugal says could face shortage if Nigeria does not deliver all LNG due

Rate this item
(0 votes)

Portugal could face supply problems this winter if Nigeria does not deliver all the liquefied natural gas (LNG) it is due to, the European Union country's environment and energy minister said on Monday.

Asked whether with many countries now looking for alternatives to Russian gas there was a chance that Nigeria might not meet its LNG supply volumes, Duarte Cordeiro said that while the government had given Lisbon assurances that it would do so, "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," Cordeiro told a conference in Lisbon hosted by CNN Portugal.

Cordeiro did not say what would prevent Nigeria supplying the LNG it was contracted to.

Oil and gas output in Nigeria has been throttled by theft and vandalism of pipelines, leaving gas producer Nigeria LNG Ltd's terminal at Bonny Island operating at 60% capacity.

Nigeria LNG, which is owned by state-oil company NNPC Ltd, Shell (SHEL.L), TotalEnergies (TTEF.PA) and Eni (ENI.MI), did not immediately respond to a request for comment.

Although Portugal has its gas reserves at 100% of storage capacity, 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% of total imports, while the United States was the second-largest supplier with a share of 33.3%.

Its other suppliers include Trinidad and Tobago, Algeria, Qatar and Russia, the latter accounting for just 2% last year.

Portugal is "diversifying its suppliers to increase the country's energy security", Cordeiro said, adding that it is adopting strategies to lower gas consumption, while boosting its already high production of electricity through renewables.

"Portugal has been preparing, like all of Europe, for what will be a difficult winter," he said, urging the European Commission to move forward with the implementation of a joint gas purchasing platform and defining import prices.

 

Reuters

November 25, 2024

From zero to $10 billion annual transactions: How Jiji became one of Nigeria’s e-commerce leaders

When Jiji launched in 2014, it entered a competitive e-commerce market in Nigeria, joining the…
November 24, 2024

PDP governors urge Tinubu to review economic policies amid rising hardship

Governors elected on the platform of the Peoples Democratic Party (PDP) have called on President…
November 24, 2024

Older adults opened up about things they ‘took for granted’ in their 20s and 30s

Last month, we wrote a post where older adults from the BuzzFeed Community shared things…
November 16, 2024

Influencer eats pig feed in extreme attempt to save money

Popular Douyin streamer Kong Yufeng recently sparked controversy in China by eating pig feed on…
November 22, 2024

FG excited as pro-Biafra agitator Simon Ekpa arrested in Finland on terrorism charges

Simon Ekpa, the controversial leader of the pro-Biafra faction Autopilot, was arrested by Finnish authorities…
November 25, 2024

Here’s the latest as Israel-Hamas war enters Day 416

Hezbollah rockets land near Tel Aviv after large Israeli strike on Beirut Lebanon's Hezbollah movement…
November 21, 2024

Nigeria comes top in instant payment system inclusivity index in Africa

Nigeria’s instant payment system is projected to advance to the maturity inclusion spectrum ahead of…
October 27, 2024

Nigeria awarded 3-0 win over Libya after airport fiasco

Nigeria have been awarded a 3-0 victory over Libya, and three vital points, from their…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.