Shell's $2 billion investment in the HI gas project offshore Nigeria will supply 350 million standard cubic feet of gas per day to Nigeria LNG (NLNG) Limited's Train 7 project.
The HI gas field, discovered in 1985, is being enabled by a presidential directive that introduced a competitive fiscal framework for non-associated gas in onshore and shallow offshore fields.
The three landmark FIDs—the HI and Ubeta gas projects, and Bonga North deepwater—represent blueprint projects selected and unlocked by the federal government to drive the implementation of the presidential directives.
Nigeria's LNG production capacity is planned to increase by 8 million metric tonnes yearly, translating to 35% of current production, with the NLNG Train 7 project.
President Tinubu's administration has implemented industry reforms aimed at attracting foreign investment and streamlining operations in the oil and gas sector. These reforms include fiscal incentives, regulatory clarity, operating process simplification, reduced contracting costs, and shorter approval cycle times. The HI gas project, in partnership with Sunlink Energies and Resources Limited, will significantly boost Nigeria's gas supply and strengthen the reliability of LNG exports. The Ubeta FID will further solidify gas supply for the NLNG Train 7 project.
Q: What is a Final Investment Decision (FID)?
FID signifies the formal approval and commitment by an energy company to proceed with a project.
Q: How will Shell's investment impact Nigeria?
The project will help Shell grow its integrated gas portfolio while supporting Nigeria's plans to become a more significant player in the global LNG market.
Nigeria is becoming an increasingly attractive destination for oil and gas investment.
Government reforms are playing a key role in unlocking new projects and boosting production.
The NLNG Train 7 project will significantly increase Nigeria's LNG export capacity.
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