Can Nigeria increase gas supplies amidst a Russian shortage?
There’s a saying that there are no absolute winners or losers in war, just lessons. But, this isn’t entirely true. The winners are just not the warring parties.
Take the Russia-Ukraine crisis, for example. Demand for stocks and prices of weapon manufacturing companies is soaring, while oil prices have currently surpassed $100 per barrel. It’s ethically questionable, but war, like every other event on Earth, creates opportunities for people, companies, and even countries in the proper position to take advantage of them.
Some takeaways:
-
Europe’s dependence on Russia’s natural gas has become a bigger problem with Russia’s Ukraine invasion and Europe is on the lookout for alternative sources of natural gas.
-
Nigeria has the 9th largest proven gas reserves globally and is already an important supplier of gas to Europe behind Russia, the US and Qatar. We have an opportunity to increase gas exports to Europe.
-
But first, we need to address issues with our natural gas production capacity and output which have been affected by Nigeria’s oil and gas upstream issues like theft, vandalism and lack of investment.
The most significant opportunity in the Russia-Ukraine crisis is also one of the most significant threats—gas supply to Europe (the EU’s 27 countries and the UK). Europe’s reliance on Russia’s gas has never been comfortable for the region. With over a third of Europe’s gas supplies coming from Russia, Europe is dependent on Russia for gas. As a result, to a large extent, Europe’s energy security lies in Russia’s (read Putin’s) hands—not a position any Western country wants to be in.
Following Russia’s invasion of Ukraine, it’s become more urgent than ever that Europe finds new energy sources, whether gas or renewables. But, switching to renewables takes time, and gas is the transition fuel of choice while Europe expands its renewable energy capacity. So, the short to medium-term solution is to find other gas sources.
Nigeria has an opportunity
Invest with Confidence, Operate with Precision.
Access economic and industry data & insight for global organisations.
Trusted by leading global organisations
