Nigeria has secured its third major gas investment in 18 months, with Shell approving a $2 billion Final Investment Decision (FID) for a new offshore gas development in the HI Field, located in Oil Mining Lease (OML) 144.
The project, is expected to deliver about 350 million standard cubic feet of gas per day (mmscf/d) from 2028 — roughly one-third of the gas requirements of the Nigeria LNG Limited’s Train 7 project.
The Shell Nigeria Exploration and Production Company Limited (SNEPCo), on Tuesday announced the additional investment to grow Nigeria’s offshore gas output.
SNEPCo, a subsidiary of Shell UK PLC, announced the Final Investment Decision in a statement by its Communications Manager, Mrs Gladys Afam-Anadu,
Afam-Anadu said that when completed, the project would supply 350 million standard cubic feet of gas daily.
According to her, the gas production which targets to commence before 2030 will be fed to Nigeria Liquified Natural Gas (NLNG) Train 7.
Shell holds 25.6 per cent interest in NLNG, which produces and exports liquified natural gas to global markets.
“Today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on deep-water and integrated gas.
“This upstream project will help Shell to grow its leading integrated gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global market.
“The project will also bolster NLNG’s contribution to Nigeria’s economic development goals, including jobs in construction and operations,” she said.
Meanwhile, President Bola Ahmed Tinubu, in a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, welcomed the investment, describing it as another clear vote of confidence in Nigeria’s economic reforms and energy policies.
“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,” the President said.
The new decision brings total upstream investment commitments in Nigeria’s oil and gas sector to over $8 billion since Tinubu assumed office in 2023.
The announcement follows earlier approvals of the Ubeta Non-Associated Gas project and the Bonga North deepwater development, both seen as cornerstones of the administration’s energy revitalisation drive.
Together, the Ubeta and HI gas projects will supply up to 15 percent of the total feedgas requirements of the NLNG’s Trains 1 to 7, underpinning energy security and export reliability.
These investment inflows, it was gathered, are the result of targeted reforms introduced by the Tinubu administration, coordinated through the Office of the Special Adviser to the President on Energy.
The reforms include fiscal incentives, streamlined regulatory processes, reduced contracting costs, and faster approval timelines — measures now enshrined in law.
The HI gas field, discovered in 1985, is being developed under Presidential Directive 40, which introduced a new fiscal framework to attract Non-Associated Gas investment in onshore and shallow offshore zones.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the HI and Ubeta projects will solidify the foundation for NLNG’s Train 7 and enhance domestic energy access.
“With the Ubeta FID and now the HI FID, we have secured the gas supply needed to make NLNG Train 7 not just possible, but transformative. These projects will strengthen Nigeria’s LNG exports, expand LPG availability for households, reduce imports, and boost foreign exchange earnings. And this is only the beginning — more FIDs are on the horizon”, Verheijen stated.
Shell’s Upstream President, Peter Costello, affirmed the company’s long-term commitment to Nigeria’s energy sector.
“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.
“This project will grow Shell’s leading gas portfolio while supporting Nigeria’s ambition to become a more significant player in the global LNG market”, Costello said.
The NLNG Train 7 expansion, to which the new projects will contribute, is expected to increase Nigeria’s LNG capacity by 8 million metric tonnes annually, a 35 percent boost over current production.
The expansion will also stimulate thousands of direct and indirect jobs, strengthen SME participation in host communities, and expand the country’s clean energy footprint.
President Tinubu reaffirmed his administration’s commitment to sustaining a stable investment climate.
