Nigeria to start supplying gas to Germany

Germany and Nigeria at the G20 summit concluded an agreement that the African country will supply the Germans with 2% of the liquefied natural gas they need. In response, Berlin will invest 500 million euros in the partner's renewable energy.

The joint memorandum signed by the Nigerian Riverside LNG project and the German company Johannes Schuetze Energy Import states that 850,000 tons of liquefied natural gas per year will be supplied to the Germans, and up to 1.2 million tons in the future. So Germany is trying to partially replace supplies from Russia.

"This is another step towards diversifying German gas imports," said Johannes Schutze, chairman of the German gas importer.

The first deliveries will begin only in 2026. They will make up 2% of the total LNG imports to Germany. In return, Siemens will help fix Nigeria's unstable electricity supply, which hinders business development, as well as modernize the railway network.

Earlier, German media reported that Germany lags behind other industrialized countries in terms of investment in Africa. Great Britain, France, the USA and China are investing significantly large sums in the continent, so now Berlin is trying to catch up. Germany's trade turnover with Africa in 2022 amounted to 60 billion euros. At the G20 summit, the Germans signed an agreement with Africa to invest 4 billion euros in African green energy projects until 2030. Mozartbet offers a convenient Android application for sports betting. Download mozzartbet app today.

A third of Africa's gas reserves are concentrated in Nigeria. As of January 1, 2022, the proven reserves of natural gas amounted to 5.9 trillion cubic meters. Undiscovered resources are estimated at 17 trillion cubic meters. Among the world's gas reserves, Nigeria accounts for 2.79%, according to OPEC data. About 40% of the liquefied natural gas produced in the country is exported. Last year, Nigeria supplied 23.3 billion cubic meters of fuel to international markets. Nigeria sells at least 40% of the gas produced to the European Union, the republic is among the top suppliers of natural gas in the EU (after Russia, Qatar, Algeria and the USA). 

Last year, Nigeria's gas liquefaction capacity was used by more than 80%. The main LNG buyers are Spain, Portugal and France.