Nigeria to Support EU Gas Supply Security

The Federal Government of Nigeria will help the European Union (EU) attain long term gas supply security.

This intent, according to a statement from the NNPC, emerged following discussions at the eleventh EU-OPEC Energy Ministerial Dialogue in Brussels, Belgium where Minister of Petroleum Resources and Alternate President of the OPEC Conference, Diezani Alison-Madueke noted Nigeria ‘is prime to explore its gas potentials to the fullest’.

This pledge is particularly crucial as Europe struggles to free itself from over dependence on Russia’s natural gas. Russia currently supplies around 30 per cent of all gas consumed within Europe and has been accused of using it as “a weapon.” Moscow cut gas supplies to Kiev last week after Ukraine failed to meet a deadline to pay a $1.95 billion gas debt, despite extensive negotiations leading up to the deadline. Meanwhile, the EU has stressed the need to diversify its energy consumption away from Russian gas.

Over the weekend, Iran’s oil minister Bijan Namdar Zanganeh, made similar promises, announcing that the Islamic Republic was ready to also supply Europe with gas, reduce threats to its gas supply security.

, the EU Energy Commissioner says he recognises the long-term potential of Nigeria’s energy sector and would welcome further discussions to explore ways for greater collaboration between the EU and Nigeria.

Nigeria’s gas production has increased to over eight billion cubic feet per day and the country is the eighth largest gas producer in the world, and sixth largest gas supplier to Europe. Meanwhile, the country has over 180 trillion cubic feet (tcf) of discovered reserves and up to 600 tcf of undiscovered gas reserves.

Alison-Madueke revealed that significant investments was being planned to support expansion of the sector in the coming years. While increasing domestic power generation is a priority for the government, export capacity will also rapidly grow, particularly as new LNG projects are completed, she noted

Earlier, Alison-Madueke had given a keynote address at the Ministerial Meeting, in her role as Alternate President of the OPEC Conference, during which she highlighted the strength of the trade and energy relations between OPEC and the EU countries. She noted that OPEC countries supply the EU with over thirty per cent of annual oil consumption and nearly twenty per cent of annual gas demand.

She noted the role of OPEC in ensuring stability, transparency and predictability in the international oil markets, which is essential as the global economies recover and strengthen. Alison-Madueke stated that in the long term, OPEC member countries will continue to play an essential role, and it is anticipated that they will provide as much as 11 million barrels per day (Mbpd) out of the anticipated 18 Mbpd of additional oil required to meet the expected worldwide demand growth by 2035.

In order to maintain growth and investment, the Petroleum Minister emphasised the importance of maintaining reforms in emerging economies. She noted that one such reform in Nigeria is the Petroleum Industry Bill, PIB, currently before Nigeria’s National Assembly, which will change the face of the country’s petroleum operations and ensure they remain in line with international standards and best practices.

She noted that reform in the energy sector will support the longer-term economic priorities of Africa’s largest economy, with significant investment planned in infrastructure, power generation, industry and agriculture, as well as in health and education services.