Project to Deliver 350m Standard Cubic Feet of Gas Daily to NLNG by End of Decade
Segun Atanda | NewsmakersNG/
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, has announced a major step forward in Nigeria’s offshore gas development with a final investment decision (FID) on the HI Gas Project, in partnership with Sunlink Energies and Resources Limited.
The HI Project, located about 50 kilometres off Nigeria’s coast, is expected to deliver up to 350 million standard cubic feet of gas per day — equivalent to 60,000 barrels of oil per day — to Nigeria LNG (NLNG) on Bonny Island, where Shell holds a 25.6% interest. Production is slated to commence before the end of this decade.
Shell’s Upstream President, Peter Costello, described the move as a demonstration of the company’s continued faith in 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,” he said. “This project will grow our leading Integrated Gas portfolio while supporting Nigeria’s plans to become a more significant player in the global LNG market.”
The development is also expected to support NLNG’s Train 7 expansion, which will increase production capacity and strengthen Nigeria’s position in the global gas market. Shell aims to grow its global LNG volumes by 4–5% annually until 2030, aligning with its Capital Market Day 2025 commitments.
The HI field, discovered in 1985, holds an estimated 285 million barrels of oil equivalent (mmboe) in recoverable reserves. The project — a joint venture between Sunlink Energies (60%) and SNEPCo (40%) — will feature a wellhead platform with four wells, a pipeline to Bonny Island, and a gas processing plant. The processed gas will feed into NLNG, while condensate will be exported through the Bonny Oil and Gas Export Terminal.
The project is expected to create jobs during construction and operation phases and contribute significantly to Nigeria’s energy transition, as LNG emits less greenhouse gas than coal, petrol, or diesel.
The HI Gas Project follows Shell’s December 2024 FID on the Bonga North deep-water project and its 2025 increase in stake in the main Bonga field — reaffirming its role as a disciplined investor in Nigeria’s offshore and gas sectors.
Shell said the HI Project forms part of its strategy to deliver new upstream and integrated gas projects that could collectively produce over one million barrels of oil equivalent per day between 2025 and 2030, while maintaining a 1% annual growth across its upstream and gas business.
