Portugal has announced plans to increase Liquefied Natural Gas (LNG) imports from Nigeria and the United States as part of efforts to reduce reliance on Russian gas supplies, which have significantly dwindled due to sanctions imposed after Russia’s invasion of Ukraine. Portuguese Environment Minister Maria da Graca Carvalho disclosed this during a panel at the World Economic Forum in Davos, stating that while Portugal is now “practically independent of Russian gas,” the country seeks further diversification of its energy sources. In 2024, Nigeria accounted for 51% of Portugal’s LNG imports, while 40% came from the U.S., according to data from grid operator REN. The minister also called for greater energy cooperation within the European Union to improve energy independence and security, particularly by addressing Iberia’s limited interconnections with France.
However, increased U.S. energy exports, driven by former President Donald Trump’s “Drill, baby, drill” policy, could have severe implications for Nigeria’s economy, which depends on oil for 90% of its revenue. A report by SB Morgen Intelligence warned that a surge in U.S. oil production could depress global oil prices, threatening Nigeria’s financial stability and economic projections. Nigeria’s 2025 budget, based on a $75 per barrel oil price target, faces risks that could lead to reduced government spending, delayed infrastructure projects, and increased debt levels. With oil revenue expected to fund over half of Nigeria’s national budget, the potential drop in oil prices could exacerbate fiscal instability, deepen poverty, and worsen regional inequalities across the country.
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