Germany counts on natural gas supplies from Nigeria

German companies are interested in gas supplies from Nigeria and are counting on cooperation with their Nigerian colleagues. About it stated German Chancellor Olaf Scholz in a conversation with the Nigerian publication Punch.

“Nigeria has the largest gas reserves in Africa. German companies are interested in gas supplies from Nigeria and look forward to cooperation with Nigerian gas companies,” Scholz noted.

The German Chancellor also said Germany welcomes joint initiatives to develop the hydrogen market. Germany has a significant need for natural gas and, eventually, hydrogen to power its economy. Specific volumes must be agreed upon in negotiations between Nigerian gas producers and German gas traders.

In addition, Scholz said that in 2022, Germany managed to achieve independence from Russian gas within a few months by reducing its consumption and diversifying supplies, in particular by switching to liquefied natural gas and expanding the use of renewable energy sources.

In August, a group of gas storage operators INES statedthat Germany will face the risk of serious gas shortages until early 2027 unless it develops additional fuel infrastructure. But if the coming winter is cold, storage supplies could be depleted by the end of January 2024. Additional liquefied natural gas (LNG) terminals, gas storage capacity and pipeline equipment are needed to ensure supply.

On June 12, German Economics Minister Robert Habeck said that if Russia and Ukraine do not extend the gas transit agreement after 2024, Germany may be forced to reduce or even shut down industrial capacity. Habeck also noted that the country needs additional capacity, including a planned LNG terminal on Germany’s northern coast that would support supplies to both East Germany and Eastern Europe.