Nigeria is expected to add new gas projects to boost exports following a ban placed by the European Union on the importation of Liquefied Natural Gas from Russia.

Nigeria is a leading LNG exporter, primarily to Europe, but with a diversified customer base that includes countries in Asia.

Quoting data and analysts, Reuters said the EU will be able to fully replace Russian LNG imports with alternative supplies from 2027 without major price shocks, thanks to booming projects in the United States, Qatar, Nigeria, and others.

The EU on Thursday approved new sanctions against Russia for its war in Ukraine that ban Russian LNG imports from January 1, 2027, a year earlier than planned.

EU energy payments to Moscow have come under renewed scrutiny after U.S. President Donald Trump demanded that Europe cease all purchases. While the EU has cut its reliance on Russian energy by 90% since 2022, it has still imported more than 11 billion euros? worth of Russian energy so far this year.

European economies suffered from a gas price spike in 2022-2023 after Russia invaded Ukraine, but the world has witnessed a boom in LNG projects since then, which analysts say will result in a global gas supply glut later this decade.

Russia supplies the European Union with 21 million tons per year of LNG, of which 15.5 million tons come under long-term contracts, according to data from the International Group of Liquefied Natural Gas Importers.

That is insignificant compared to the predicted jump in the global LNG export capacity by 161 million tons per annum (mtpa) by 2027, according to Rabobank estimates.

?2027 is a key year for new LNG export capacity, especially from the US and Qatar. ? There is enough coming online to make up for a Russian shortfall, especially if Russian LNG can just flow into other markets like China,? said Florence Schmit, energy strategist at Rabobank.

The United States will add more than 50 mtpa by the end of 2027 on top of 2025 levels, cementing its position as the top exporter, Rabobank data showed.

The U.S. is already supplying over 50% of the EU?s LNG, and the share may rise to as much as 70%, according to Energy Aspects.

Qatar is expected to add around 31 mtpa, thanks to its North Field expansion, while Canada and Nigeria will also have new projects.

?All in all, ? halting Russian LNG imports in Europe should have minimal impact on gas prices,? Anne-Sophie Corbeau, a scholar at the Columbia University Center on Global Energy Policy, told Reuters.

Nigeria?s main operator, Nigeria LNG Limited (NLNG), has a production capacity of 22 million tonnes per annum (MTPA) and is undergoing expansion with the Train 7 project, which will increase capacity to approximately 30 MTPA upon completion.

The country?s key markets include Spain, Portugal, France, Italy, Turkey, China, and India.

The EU LNG ban will not reduce overall Russian supply in the market, but rather reshape global trade flows as cargoes will likely shift to Asia, said Arturo Regalado of Kpler.

Russia is expected to add nearly 20 mtpa from its Arctic LNG 2 project to its existing capacity of nearly 33 mtpa.

Prices in Europe and Asia could rise, though, if Russia is unable to sell significant volumes of LNG in Asia due to a combination of sanctions and unwillingness of Asian buyers to import it, Corbeau said. (Channels TV)

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