Project to supply 350 million standard cubic feet of gas per day to NLNG, reinforcing Nigeria’s LNG export capacity
By Damilola Abiola
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, and its partner Sunlink Energies and Resources Limited have announced a final investment decision (FID) on the HI gas project, an offshore development expected to boost Nigeria’s liquefied natural gas (LNG) exports and strengthen the country’s position in global energy markets.
When completed, the project will deliver up to 350 million standard cubic feet of gas per day, equivalent to about 60,000 barrels of oil equivalent, to Nigeria LNG (NLNG), where Shell holds a 25.6% interest. Production is scheduled 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 Peter Costello, Shell’s Upstream President. “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 HI gas field, discovered in 1985, lies about 50 kilometers offshore in 100 meters of water. It is estimated to hold 285 million barrels of oil equivalent (mmboe) in recoverable resources. The project will feature a wellhead platform with four wells, a pipeline network transporting multiphase gas to Bonny Island, and a gas processing plant, from which the processed gas will be supplied to NLNG and the condensate to the Bonny Oil and Gas Export Terminal.
Shell noted that the development aligns with its Capital Market Day 2025 commitment to bring new upstream and integrated gas projects online between 2025 and 2030, targeting a total peak production exceeding one million barrels of oil equivalent per day. The company also aims to grow its global LNG volumes by 4–5% annually until 2030.
The HI project is expected to contribute to Nigeria’s economic development, creating jobs in construction and operations, while enhancing gas supply to NLNG’s Train 7 expansion, which is designed to increase production capacity at the Bonny Island terminal.
Shell added that LNG remains a vital part of the global energy transition, as it produces fewer greenhouse gas emissions compared to coal, petrol, or diesel when used for power generation or transportation.
The investment follows Shell’s final investment decision on the Bonga North project in December 2024 and the company’s recent increase in its stake in the Bonga field, underscoring its continued long-term commitment to Nigeria’s deepwater and integrated gas sectors.