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Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a Final Investment Decision (FID) on the $2 billion HI gas project offshore Nigeria. The move marks another major step by the Anglo-Dutch energy company to strengthen its gas portfolio and reaffirm its commitment to Nigeria’s oil and gas sector.
The HI project, developed in partnership with Sunlink Energies and Resources Limited, is expected to deliver 350 million standard cubic feet of gas per day, equal to about 60,000 barrels of oil equivalent at peak production. The gas will supply Nigeria LNG (NLNG)—in which Shell holds a 25.6 percent stake—helping to sustain exports from the Bonny Island LNG terminal and boost Nigeria’s foreign exchange earnings.
Located roughly 50 kilometres offshore and in about 100 metres of water, the HI field is projected to begin production before the end of this decade. Discovered in 1985, the field holds an estimated 285 million barrels of oil equivalent (mmboe) in recoverable resources.
Speaking on the investment decision, Peter Costello, Shell’s Upstream President, said the project demonstrates the company’s confidence in Nigeria’s energy future. “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,” he said. “This upstream project will help Shell grow our Integrated Gas portfolio while supporting Nigeria’s ambition to become a key player in the global LNG market.”
The Federal Government has also hailed the project as evidence that recent reforms under President Bola Tinubu’s administration are restoring investor confidence in the sector. Since 2024, the government has implemented targeted reforms coordinated by the Office of the Special Adviser to the President on Energy, led by Olu Verheijen. These reforms, embedded in law, have introduced new fiscal incentives, simplified regulatory processes, reduced contracting costs, and shortened approval timelines.
Verheijen noted that the HI project is one of three “blueprint” projects selected by the government to drive implementation of presidential directives on gas development. “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,” she said. “These projects will strengthen the reliability of Nigeria’s LNG exports while expanding LPG supply for domestic use, reducing imports, boosting foreign exchange, and improving access to clean cooking for millions of Nigerians.”
The HI gas field development is being enabled by Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas (NAG) in onshore and shallow offshore areas. This directive, alongside policy clarity and improved operating conditions, has helped unlock long-stalled energy investments.
The gas from the HI field will feed into NLNG’s Train 7 expansion, which aims to increase Bonny Island’s annual liquefaction capacity from 22 million to 30 million tonnes. The project is a cornerstone of Nigeria’s plan to expand LNG exports, attract foreign investment, and diversify its hydrocarbon income base at a time when crude oil production faces challenges such as pipeline vandalism and underinvestment.
Shell’s participation aligns with its global goal to expand its LNG output by 4 to 5 percent annually through 2030, making gas a critical part of its energy transition strategy. The company describes LNG as a “bridge fuel” that supports lower-carbon energy generation, as it emits about 40 percent less carbon dioxide than coal when used for power and produces fewer pollutants than diesel or petrol.
The HI project’s infrastructure will include a wellhead platform with four wells, subsea pipelines to transport multiphase gas to Bonny Island, and a new onshore gas processing plant. Processed gas will go to NLNG, while condensates will be transported to the Bonny Oil and Gas Export Terminal.
Under the joint venture structure, Sunlink Energies and Resources Limited holds a 60 percent operating interest, while SNEPCo retains 40 percent. Analysts say this model reflects Nigeria’s policy drive for stronger local participation in the oil and gas industry, combining international expertise with homegrown operatorship.
Beyond boosting LNG exports, the HI gas project is expected to create hundreds of jobs during construction and operations, spur local contracting opportunities, and contribute to community development initiatives. Industry analysts believe it could also help stabilise Nigeria’s domestic gas supply at a time of chronic power shortages.
A Lagos-based energy analyst noted, “Projects like HI not only strengthen Nigeria’s position as a global LNG exporter but also have the potential to ease domestic energy constraints if properly managed between export and local market needs.”
For Shell, the HI FID fits into its broader growth strategy unveiled at its 2025 Capital Markets Day, which aims to bring new upstream and integrated gas projects online between 2025 and 2030 with combined peak production of over 1 million barrels of oil equivalent per day.
The decision follows Shell’s earlier Bonga North FID in December 2024 and an increase in its equity stake in the main Bonga field—moves that show its commitment to disciplined reinvestment in Nigeria’s deepwater and gas assets, despite ongoing divestments from onshore operations affected by security and environmental issues.
Shell’s renewed focus on offshore and gas investments reflects a deliberate shift toward lower-risk, lower-emission, and commercially resilient projects. It also aligns with both Shell’s global decarbonisation targets and Nigeria’s ambition to emerge as a global gas powerhouse in the coming decade.
