Galp gas supplies agreed with Nigeria fall short

 In Galp, Gas and Petroleum, News, Oil and Gas

Galp’s largest supplier of natural gas, Nigeria has failed to deliver the amounts agreed in a contract drawn up three years ago, despite efforts from the company, the Portuguese government and the European authorities to encourage it to fulfil its contractual obligations.

Under the terms of the contract agreed with the Nigerian State, the country is supposed to deliver a million tonnes of gas per year to the shipping terminal at Sines.

However, after three years, Nigeria continues to systematically fail to deliver the amount stipulated in the long-term contract according to information received by the business daily Negócios.

Nevertheless, in terms of sources of supply for the Iberian market, Nigeria continues to be the main supplier of gas imported by Galp (80%), followed by Algeria (20%).

“The issues have not been resolved. Galp continues to suffer from cuts in natural gas supplies that have only got worse since 2021 to date, and are a reflection of the various problems faced by Nigeria (such as a lack of local security, acts of vandalism and sabotage) despite institutional efforts made by Galp and the Portuguese and European authorities.

The Nigerian government has also been facing thefts of natural gas, and has apologised for failures in the gas supply, promising that the situation will be rectified within a few months. Under the terms of the contract Nigeria should supply around 3.4 million cubic metres of liquified natural gas (40 TWh) per year to 2027.