Portugal has revealed plans to boost its Liquefied Natural Gas (LNG) imports from Nigeria and the United States in an effort to reduce reliance on the diminishing gas supplies from Russia. According to several media reports, Portuguese Environment Minister Maria da Graca Carvalho announced the decision during a panel at the World Economic Forum in Davos on Tuesday. The shift comes as a response to the sanctions imposed on Russian oil and gas imported through pipelines. “Portugal is now practically independent of Russian gas… but we want to reduce this figure further by importing more gas from Nigeria and the United States,” Graca Carvalho stated, as reported by the economic website ECO.

In 2024, Portugal imported 49,141 gigawatt-hours of natural gas, with about 96 percent of it being LNG, according to data from the country's electricity and gas grid operator, REN. Of this LNG, Nigeria supplied 51 percent, the United States contributed around 40 percent, and 4.4 percent came from Russia. In comparison, Russia accounted for 15 percent of Portugal's LNG supply in 2021. The shift follows the European Union's sanctions on Russian oil and gas transported via pipelines, though LNG transported by ship to Europe has remained unaffected.

Meanwhile, U.S. President Donald Trump has pushed the European Union to increase its energy purchases from the U.S., warning of tariffs if this does not happen. This demand aligns with his "Drill, baby, drill" philosophy, which advocates for a significant boost in U.S. oil production to ensure U.S. energy independence and solidify its position as a dominant oil exporter. This surge in U.S. oil supply could exert downward pressure on global oil prices, particularly affecting nations that rely on oil revenues.

The economic stability of Africa's largest oil producer, Nigeria, is at risk if global oil prices fall. A sharp decline in oil prices would undermine Nigeria's financial projections, putting its economic plans and fiscal health in jeopardy. The country relies heavily on oil revenue to fund over half of its national budget. A significant drop in oil prices would strain Nigeria’s economy, leading to higher borrowing costs at unsustainable interest rates. The country’s debt is expected to rise to N187 trillion this year, further deepening fiscal instability and increasing pressure on government spending. This, in turn, could result in delayed infrastructure projects and cuts to vital social safety nets, driving more people into poverty.

In addition, Graca Carvalho emphasized the need for stronger energy cooperation within the 27-nation European Union. She noted that Iberia, comprising Portugal and Spain, remains an “energy island” due to the challenges in building interconnections with France. This highlights the ongoing struggles within the EU to ensure energy security and independence.