Shell’s approval of a $2 billion investment in the HI offshore gas project marks a significant milestone in Nigeria’s energy sector modernization. The project aims to supply Nigeria LNG (NLNG) with up to 350 million standard cubic feet of gas per day at peak production, enabling substantial LNG export growth and reinforcing Nigeria’s place in global markets.
The offshore HI field is located approximately 50 kilometers from Nigeria’s coast, in water depths of around 100 meters.
Discovered in 1985, its development follows Shell’s strategic shift toward deepwater energy assets after the company divested from onshore operations earlier in 2025. Production is slated to begin before the end of the decade.
What is the scope of Shell’s HI offshore gas project?
The HI project features a wellhead platform with four production wells, connected by subsea pipelines to a gas processing facility on Bonny Island.
The produced gas will feed Nigeria LNG’s Train 7 expansion, which is designed to increase annual LNG output from 22 to 30 million tonnes.
Sunlink Energies and Resources Limited holds 60% operating interest in the project, while Shell’s Nigerian subsidiary owns the remaining 40%.
This joint venture structure showcases a partnership between international and local players aimed at enhancing resource development.
Did you know?
The HI offshore gas field was discovered in 1985 but only received final investment approval in 2025, reflecting shifts in market and policy conditions.
How will this investment support Nigeria’s LNG expansion?
By increasing feedgas supply to Nigeria LNG, the HI project directly contributes to the Train 7 expansion, a critical upgrade to Nigeria’s largest LNG export terminal.
This expansion will add approximately 8 million tonnes of LNG annually, enabling Nigeria to meet the growing global demand for cleaner energy.
Alongside other projects such as Ubeta and Bonga North, the HI project is expected to supply up to 15% of Nigeria LNG’s feedgas requirements, solidifying infrastructure and capacity that underpin the country’s long-term export goals.
What are the economic and strategic benefits for Nigeria?
The project promises significant economic gains through job creation in both construction and ongoing operations, supporting local industry and infrastructure development.
It also aligns with President Bola Tinubu’s broad energy reforms aimed at unlocking foreign investment and modernizing Nigeria’s oil and gas sector.
Shell’s sustained presence reflects confidence in Nigeria as a key player in the global LNG market and in the effectiveness of reform efforts aimed at improving the business environment and operational security.
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Who are the main partners in this offshore venture?
Shell Nigeria Exploration and Production Company Limited (SNEPCo) operates the project alongside Lagos-based Sunlink Energies and Resources Limited.
Additional stakeholders in Nigeria LNG include the Nigerian National Petroleum Corporation (NNPC), holding a 49% stake, with Shell as the second-largest shareholder at 25.6%.
This collaboration represents a strategic mix of international expertise and local ownership, fostering sustainable development tailored to market and geopolitical realities.
What challenges may affect successful project delivery?
While the announcement signals progress, the HI project faces challenges typical of offshore developments. These include complex engineering requirements, regulatory compliance, environmental considerations, and maintaining positive community relations.
Navigating the evolving regulatory framework and ensuring robust participation in local content will be crucial for success.
Shell and partners will need to maintain transparency and stakeholder engagement to mitigate risks and realize the project’s full potential. Shell’s $2 billion pledge reaffirms its commitment to Nigeria’s energy future.
As the country prepares to expand its LNG capacity, this initiative exemplifies how focused investments and cooperative partnerships can drive economic growth, enhance export capabilities, and support global energy transitions.
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