Nigeria has secured a major boost to its gas sector as global energy giant Shell announced a Final Investment Decision (FID) on the HI gas project, a shallow offshore development with a $2 billion commitment. It’s said on Tuesday.
According to a statement the decision was taken by Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, together with Sunlink Energies and Resources Limited; with Shell’s Upstream President, Peter Costello, commented that the investment is a strategic one that will help expand its portfolio.
“This Upstream project will help Shell grow our leading Integrated Gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market.” He noted.
Nigerian president Bola Ahmed Tinubu hailed the decision, taken by Shell Nigeria Exploration and Production Company Limited (SNEPCo) and its partner, Sunlink Energies and Resources Limited (60% interest), describing it as a clear victory for the government’s energy reform agenda, marking over $8 billion in upstream investment commitments since 2023.
The HI gas project, located in the shallow offshore field (OML 144), is projected to begin delivering approximately 350 million standard cubic feet of gas per day (mmscf/d) from 2028. This output will be crucial feedstock for the Nigeria LNG (NLNG) facility on Bonny Island, in which Shell holds a 25.6% interest.
At peak production, the gas supply from HI will meet nearly one-third of the feedgas requirements for the massive NLNG Train 7 expansion project. The Train 7 project, which is reported to be over 80% complete and is set to increase NLNG’s total production capacity by 35% (from 22 to 30 million metric tonnes per annum), relies heavily on securing new, reliable gas sources like the HI field. Shell holds a 25.6% interest in the gas train project.
“This major FID announcement by Shell, their second in one year, is a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment,” said President Tinubu.
The HI field, first discovered in 1985, holds an estimated recoverable resource volume of approximately 285 million barrels of oil equivalent (mmboe).
Shell’s latest investment is Nigeria’s third major oil and gas FID in the last 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project.
