- Shell Greenlights $2B Offshore Gas Project in Nigeria
- The HI field will supply 350 million scf/day to Nigeria LNG
- Production expected by decade’s end; field discovered in 1985
Shell, in partnership with Sunlink Energies, has approved the development of a new offshore gas project in Nigeria, the company announced on Tuesday. This marks the latest in a series of investments by Shell’s Nigerian operations.
Known as the HI offshore gas project, the development is expected to deliver up to 350 million standard cubic feet of gas per day at peak production. The gas will supply Nigeria LNG (NLNG), which processes and exports liquefied natural gas (LNG) to global markets.
The project, valued at $2 billion by the Nigerian government, reflects Shell’s commitment to expanding its global LNG portfolio and reinforcing its presence in Nigeria. This comes despite past operational challenges, including oil spills and theft, which led Shell to divest from its Nigerian onshore assets.
Shell remains a key player in Nigeria LNG, holding a 25.6% stake, second only to state-owned NNPC with 49%. Other stakeholders include TotalEnergies and Eni.
Discovered in 1985, the HI gas field is located about 50 kilometers offshore at a depth of 100 metres. Production is expected to begin before the end of the decade, contributing significantly to Shell’s goal of increasing its global LNG output by 4% to 5% annually through 2030.
According to Olu Verheijen, Special Adviser on Energy to the Nigerian President, the HI project will supply nearly one-third of the gas required for the Nigeria LNG Train 7 expansion.
Shell’s Nigerian subsidiary holds a 40% stake in the HI project, while Sunlink Energies owns 60%.
This announcement follows recent industry activity, including last month’s approval by Nigeria’s oil regulator of TotalEnergies’ $510 million sale of its 12.5% stake in Oil Mining Lease 118, home to the offshore Bonga oilfield, to Shell and Eni’s Agip, the field’s operators.
