Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, and Sunlink Energies and Resources Limited have signed a Final Investment Decision (FID) for the HI Gas Project, located offshore Nigeria.
In a statement on Tuesday, Shell said the project, once completed, will deliver up to 350 million standard cubic feet of gas per day — equivalent to about 60,000 barrels of oil per day — to Nigeria LNG (NLNG), in which Shell holds a 25.6 per cent interest. NLNG processes and exports liquefied natural gas to international markets.
Production from the HI Gas Project is expected to commence before the end of the decade.
Shell’s Upstream President, Peter Costello, said the development reaffirms the company’s long-term commitment to Nigeria’s energy sector, with a focus on deepwater and integrated gas.
“Following recent investment decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector,” Costello said. “This upstream project will help Shell grow our leading integrated gas portfolio while supporting Nigeria’s ambitions to strengthen its position in the global LNG market.”
The HI field, discovered in 1985, lies about 50 kilometres offshore in water depths of around 100 metres, with estimated recoverable resources of 285 million barrels of oil equivalent (mmboe).
According to Shell, the new gas volumes will boost feedstock supply to NLNG’s Train 7 project and expand the Bonny Island terminal’s production capacity, aligning with Shell’s target to grow global LNG output by 4–5 per cent annually through 2030.
The project is a joint venture between Sunlink Energies and Resources Limited (60%) and SNEPCo (40%), and production will be reported under Shell’s Upstream segment. It will include a wellhead platform with four wells, a pipeline transporting multiphase gas to Bonny Island, and a gas processing plant that will supply processed gas to NLNG and condensate to the Bonny Oil and Gas Export Terminal.
Shell said the HI project supports its 2025 Capital Market Day commitment to bring new upstream and integrated gas developments online between 2025 and 2030, with a combined peak production exceeding one million barrels of oil equivalent per day.
The energy major noted that LNG remains crucial in the global energy transition, as it emits less greenhouse gas than coal for power generation and less than petrol or diesel when used as transport fuel.
The announcement follows Shell’s December 2024 FID on the Bonga North project and its recent increase in equity in the Bonga field, reflecting the company’s continued investment in Nigeria’s deepwater and integrated gas sectors.
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