Portugal Turns to Nigeria, US for Gas as Russian Supply Dwindles

Portugal plans to increase LNG imports from Nigeria and the US to reduce its reliance on Russian gas, according to Environment Minister Maria da Graca Carvalho at the World Economic Forum in Davos. In 2024, 51% of Portugal’s LNG came from Nigeria and 40% from the US, while Russia’s share dropped to 4.4%.

The move follows EU sanctions on Russian energy imports via pipelines after the Ukraine invasion. Despite reduced dependence, Portugal aims for greater energy security and EU-wide cooperation, particularly in improving interconnections with France.

Meanwhile, US energy policies, including surging oil production under President Trump, could challenge Nigeria’s fiscal health. Analysts warn that a decline in global oil prices would disrupt Nigeria’s budget, reliant on $75 per barrel targets, causing economic instability and exacerbating poverty.

Nigeria’s dependence on oil revenue leaves it vulnerable, with potential impacts on federal allocations, infrastructure projects, and debt obligations. Experts stress the need for diversification to cushion the economy against global market shifts.

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