Nigeria has agreed to step in and close Europe’s gas supply gap, as Europe appear to be looking for alternatives since Russia went to war against Ukraine. At present, the vast majority of Nigeria’s gas exports – around 90% – go to China.
Last week, the European Union (EU) made a formal request, urging Nigeria to take advantage of the opportunity offered by the present crisis in Europe to shore up gas supplies to it.
The EU appeal was made by EU ambassador to Nigeria, Ambassador Samuela Isopi, during a courtesy call by EU Ambassadors to Minister of State for Petroleum Resources, Chief Timipre Sylva, in Abuja last week.
Isopi said Nigeria must not allow the opportunity to pass it by, adding that while doing so, the Nigerian government should step up security in the oil-rich region to guarantee gas supply to EU member states.
Responding to the diplomat’s appeal, Chief Sylva, said the country is ready to become an alternative gas supplier to the EU. But he however urged the bloc to encourage its oil and gas firms, such as Shell, Eni, and Total Energies, to step up their investments in Nigeria’s gas sector.
“We would like to be reliable partners to solve the energy problem in Europe and we can only achieve this by working together. It is only when investment in these areas is increased that Nigeria can meet that obligation,” the minister said.
Reacting to the minister’s request, the EU ambassador expressed concern over the spate of attacks on Shell, Eno and Total Energies’s gas infrastructure that led to the declaration of force majure by the companies and noted that the development was of great concern to Europe. The recent developments in the Niger Delta are of great concern to us,” she said.
Meanwhile, the EU, both as bloc and individual nations, seems to be spreading its tentacles in the globe for alternatives. Reports say individual countries are in talks with Algeria, Qatar and other states over potential new supplies. Algeria, in particular, is reportedly providing substantial supplies of gas to the likes of Italy, Portugal and Spain.
Last week, at the European Council summit attended by President Joe Biden, the EU finalized an agreement with the US to supply 15 billion cubic meters of liquefied natural gas (LNG) to the EU this year.
Observers say the current gas supply discussions with EU bloc will boost the multi-billion, 4,128 km Trans-Saharan Gas Pipeline, which will run through the three countries into Europe.
Nigeria is seeking commercial investment in the project. Once completed, the pipeline will transport 30 billion cubic meters of gas per year.
Until the energy crisis and the changes to the EU’s energy supply following Russia’s invasion of Ukraine, the EU had been encouraging African states to shift away from fossil fuel production towards green energy.
“One of the things we warned against earlier was the speed with which EU was taking away investments in fossil fuels. We warned that the speed was faster than they were developing renewable energy. You can see now that what we were warning against is what is happening now,” stated Sylva, in a critique of the EU’s previous stance.
“In the last 10 years, over $70 billion worth of investments came to Africa, but sadly less than $4 billion came to Nigeria. Surprisingly, we are the biggest in Africa. If we cannot attract investments to Nigeria, you know where we are heading,” he said.
Sylva observed however that there has been a major change in tack by senior officials in the European Commission in recent weeks.
With the Ukraine crisis putting Europe’s gas supply from Russia at risk, there is an opportunity for Africa’s others gas producers, including Nigeria, to offer exports to Europe, increasing their revenues and also acquiring a key geopolitical position in the process.
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