Europe’s 2026 Projected LNG Demand Surge Propels Nigeria Into Desperate Measures
By Naija Enquirer Staff
Nigeria is being propelled into urgent measures to stimulate global Liquefied Natural Gas (LNG) exports as industry experts forecast record demand for the product in 2026, driven largely by Europe’s intensifying energy needs. Europe is expected to import a record-high volume of LNG this year as stronger demand for replenishing storage sites, the phase-out of Russian gas supply, and continued pipeline exports to Ukraine fuel increased consumption, the International Energy Agency (IEA) disclosed in its Gas Market Report Q1 2026 released on Friday. After setting a record in 2025, European LNG imports are projected to reach a new all-time high of over 185 billion cubic metres (bcm) in 2026. The agency said Europe’s LNG imports surged by 30 per cent, or 40 bcm, in 2025 to exceed 175 bcm, driven by stronger domestic demand, reduced pipeline gas inflows, and higher storage injections between April and October. Europe is actively seeking to expand LNG imports from Nigeria to strengthen its energy security following the sharp reduction in Russian supply. The continent aims to increase Nigeria’s current 14 per cent import share, as global gas demand continues to rise. Presently, about 60 per cent of Nigeria’s LNG exports are already shipped to Europe. As Europe intensifies efforts to diversify its energy sources, Nigeria is positioned as a critical supplier, with long-term strategies focused on reducing reliance on Russian gas through 2045 and beyond. Nigeria’s LNG output is considered vital to Europe’s evolving energy mix, with substantial potential to increase current supply volumes. The proposed $25 billion Nigeria–Morocco Gas Pipeline is also viewed as a strategic long-term infrastructure project designed to transport Nigerian gas to European markets, significantly expanding export capacity. However, despite surging demand, Nigeria’s LNG production has faced persistent challenges, including operational disruptions and infrastructure constraints, which have limited its ability to fully meet Europe’s immediate requirements. Global LNG demand, spearheaded by Europe, is expected to experience strong growth in 2026, further elevating the strategic importance of Nigerian gas supplies. European LNG netback prices have remained at a premium compared to key Asian markets, incentivising flexible cargoes to flow toward Europe, according to the IEA. As a result of rising imports, the share of LNG in Europe’s primary natural gas supply increased sharply from 30 per cent in 2024 to 38 per cent in 2025. Most of the incremental LNG supply originated from the United States, which boosted deliveries to Europe by 60 per cent year-on-year. In its quarterly outlook, the IEA projected that a surge in global LNG supply will play a central role in rebalancing global gas markets in 2026, leading to stronger demand growth following a slowdown last year. The agency noted that global LNG supply growth is expected to accelerate to over 7 per cent in 2026, marking its fastest expansion since 2019. This surge, driven largely by North American production, is projected to ease market pressures amid heightened geopolitical uncertainty. “The unfolding LNG wave is set to have a central role in shaping global gas markets in the coming years, likely putting downward pressure on prices and improving liquidity as regional gas markets become increasingly interconnected,” said Keisuke Sadamori, IEA Director of Energy Markets and Security.
