Nigeria is being stimulated into desperate measures to stimulate global Liquified Natural Gas (LNG) export as industry experts foresees a record demand of the product in 2026.
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 supply, and continued pipeline exports to Ukraine will drive increased demand, the International Energy Agency (IEA) said on Friday.
After setting a record in 2025, European LNG imports are poised to reach a new all-time high of over 185 billion cubic metres (bcm) in 2026, the Agency said in its Gas Market Report Q1 2026.
Europe’s LNG imports hit an all-time high of over 175 bcm in 2025, surging by 30 per cent (or 40 bcm) from 2024, the report found. Key factors in the record imports were stronger domestic demand, lower piped gas imports, and higher storage injections in April-October.
Report monitored by LEADERSHIP showed that Europe is actively seeking to increase LNG imports from Nigeria to bolster energy security following reduced Russian supply, aiming to boost the current 14 per cent import share.
As global gas demand rises, particularly in Europe, Nigeria is positioned as a key supplier, with 60 per cent of its LNG shipments already directed to the continent.
Europe is looking to expand its reliance on Nigerian LNG to meet rising demand and reduce dependency on Russian gas, which has become a priority through 2045 and beyond.
Nigeria’s LNG output is vital for Europe’s energy mix, with significant potential to increase current supply levels. The proposed $25 billion Nigeria-Morocco Gas Pipeline is also considered a long-term strategic route to deliver gas from Nigeria to Europe.
Though, despite the demand, Nigeria’s LNG production has faced struggles, impacting its ability to fully meet Europe’s immediate needs.
Global LNG demand, driven by Europe, is expected to see strong growth in 2026, making Nigerian supplies even more critical.
With Europe aggressively diversifying its energy sources, Nigeria remains a critical partner for future LNG supply, though infrastructure and production challenges remain.
European LNG netback prices remained mostly at a premium compared with key Asian markets, which incentivized flexible LNG cargoes to flow towards Europe, the IEA said.
As a result of the jump in LNG imports, the share of LNG in Europe’s primary natural gas supply surged from 30 per cent in 2024 to 38 per cent in 2025.
Most of the incremental LNG supply to Europe came from the United States, which boosted deliveries to Europe by 60 per cent year over year.
In the quarterly report, the IEA noted that a surge in global LNG supply is expected to play a key role in rebalancing global gas markets in 2026, leading to stronger demand growth after a slowdown last year.
The jump in supply, mostly from North America, is expected to reduce market pressures at a time of heightened geopolitical uncertainty, the IEA said.
Global supply growth is set to accelerate in 2026 to more than 7 per cent, its fastest pace since 2019, the agency said, echoing expectations from other forecasters.
“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.
