… another significant development for the Nigeria’s energy sector
Nigeria’s energy sector has recorded another significant development as Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, together with Sunlink Energies and Resources Limited, has taken a final investment decision (FID) on the HI gas project offshore Nigeria.
The Final Investment Decision (FID) on the HI field taken by Shell and Sunlink Energy Resources is a significant development for Nigeria’s energy sector.
When completed, the project will supply 350 million standard cubic feet (approximately 60 thousand barrels of oil equivalent) of gas per day at peak production to Nigeria LNG (NLNG; Shell interest 25.6%), which produces and exports liquified natural gas (LNG) to global markets. Production is expected 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 increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, is in line with Shell’s plans to grow its global LNG volumes by an average of 4-5% per year until 2030. It will also bolster NLNG’s contribution to Nigeria’s national economic development goals, including jobs in construction and operations.
Economic implications
The project is expected to generate significant revenue for Nigeria’s economy and create opportunities for local content development of the oil and gas industry.
It will also create employment opportunities for Nigerians, both directly and indirectly, contributing to the country’s economic growth.
The HI field project will help increase Nigeria’s energy security by providing a stable source of natural gas for domestic use and export.
The project involves the development of offshore and onshore infrastructure, including a wellhead platform, pipeline, and gas processing plant, which will enhance Nigeria’s energy infrastructure.¹
The FID on the HI field is a testament to Shell and Sunlink’s commitment to Nigeria’s energy sector and demonstrates the potential for foreign investment to drive economic growth and development in the country.
- The HI project is part of a joint venture between Sunlink Energies and Resources Limited (60%) and SNEPCo (40%).• The production associated with this project will be reported through Shell’s upstream segment.
- The project consists of a wellhead platform with four wells, to be installed at the HI field location; a pipeline to transport the multiphase gas onshore at Bonny; and a gas processing plant at Bonny, from where the processed gas will be transported to NLNG and the condensate to the Bonny Oil and Gas Export Terminal.
- The estimated peak production and current estimated recoverable resources presented above are 100% total gross figures. Current estimated recoverable resource volumes are a P50 estimate under the Society of Petroleum Engineers’ Petroleum Resources Classification System. P50 means there is a 50% probability of the estimate being lower and a 50% probability of it being higher.
- This project contributes to Shell’s Capital Market Day 2025 commitment to deliver upstream and integrated gas projects coming on stream between 2025 and 2030 with a total peak production of more than 1 million barrels of oil equivalent per day (boe/d). This also supports Shell’s intent to grow top-line production across our combined upstream and integrated gas business by 1% per year to 2030.
- LNG plays a key role in the energy transition, producing fewer greenhouse gas emissions than coal when used to generate electricity and fewer emissions than petrol or diesel when used for transport fuel.
- Shell took a final investment decision on the Bonga North project in December 2024 and recently increased its stake in the Bonga field, consistent with the company’s intention to be a continued disciplined investor in Nigeria’s energy sector through its Deep Water and Integrated Gas businesses.