Shell Invests in Nigeria Offshore Gas Development, Targets 350m scf/d Supply to NLNG
By Naija Enquirer Staff
London — Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a Final Investment Decision (FID) on the HI gas project offshore Nigeria, in partnership with Sunlink Energies and Resources Limited.
According to the company, the project is designed to deliver 350 million standard cubic feet (scf) of gas per day—equivalent to approximately 60 thousand barrels of oil equivalent—to the Nigeria LNG (NLNG) facility, where Shell holds a 25.6% interest. The gas will serve as feedstock for LNG production and exports to international markets.
Production from the HI project is expected to commence before the end of this decade, positioning Nigeria as a stronger player in the global liquefied natural gas (LNG) market.
Shell Reaffirms Long-Term Commitment to Nigeria
“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,”
— Peter Costello, Shell’s Upstream President
Costello explained that the new gas project aligns with Shell’s strategy to strengthen its Integrated Gas portfolio while contributing to Nigeria’s energy security and economic growth.
Boosting NLNG’s Capacity and Nigeria’s Energy Ambitions
The HI gas project will significantly enhance gas supply to the NLNG Train 7 expansion project, which seeks to increase the Bonny Island terminal’s LNG production capacity. This development aligns with Shell’s global objective of expanding LNG volumes by an average of 4–5% annually through 2030.
Shell noted that the project will also support Nigeria’s broader economic goals by creating jobs during both the construction and operational phases, while enhancing the nation’s role in global LNG supply chains.
Strategic Milestone for Nigeria’s Offshore Gas Sector
The investment marks another milestone in Shell’s deepwater operations and underscores the multinational’s renewed confidence in Nigeria’s upstream environment. Analysts see this as a positive signal for attracting more foreign direct investment into the country’s energy sector, especially amid global energy transition efforts.
By linking offshore gas resources to LNG exports, the HI project will further integrate Nigeria’s upstream and midstream sectors, reinforcing the country’s ambition to diversify revenue streams and reduce gas flaring.
With this FID, Shell joins other international operators in advancing Nigeria’s next phase of offshore gas development, promoting cleaner energy use and sustainable growth in the region.
