Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell Plc, in partnership with Sunlink Energies and Resources Limited, has taken a final investment decision (FID) on the HI gas project offshore Nigeria, valued at $2 billion.
The project, when completed, will supply 350 million standard cubic feet (approximately 60 thousand barrels of oil equivalent) of gas per day at peak production to Nigeria LNG (NLNG; Shell interest 25.6 per cent), which produces and exports liquefied natural gas (LNG) to global markets.
According to a statement, production is expected to begin before the end of this decade.
“Following recent investment decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas,” said Mr Peter Costello, Shell’s Upstream President, adding that “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.”
The increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, is in line with Shell’s plans to grow its global LNG volumes by an average of 4-5 per cent per year until 2030.
It is the third major oil and gas FID in the last 18 months, following the Ubeta gas project and Bonga North deepwater, bringing total upstream investment commitments to over $8 billion since President Bola Ahmed Tinubu assumed office in 2023.
It also disclosed that this will also bolster NLNG’s contribution to Nigeria’s national economic development goals, including jobs in construction and operations.
In reaction, Ms Olu Verheijen, the Special Adviser to President Tinubu on Energy, said the investment showed that Nigeria’s bold energy reforms are delivering results.
She noted that project will deliver over 30 per cent of gas needed for Train 7, ensuring more reliable gas exports that will reduce imports, boost FX earnings, and make clean cooking accessible to many Nigerians.
“These landmark projects are proof that targeted policy reforms, fiscal incentives, and streamlined processes are restoring investor confidence and repositioning Nigeria as a competitive global investment destination,” she said.
“And this is only the beginning, more FIDs are on the horizon as we unlock Nigeria’s vast gas potential to drive industrialization, create jobs, and power a cleaner, more prosperous future,” she added.