Shell invests $2 billion in Nigeria’s HI Field gas project, boosting LNG capacity and reaffirming confidence in the country’s energy sector reforms

Shell invests $2 billion in Nigeria gas sector with a landmark development of the HI Field, a shallow offshore Non-Associated Gas project in OML 144.

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The project, announced by the Presidency, is expected to deliver approximately 350 million standard cubic feet of gas per day from 2028.

The Special Adviser to President Bola Tinubu on Information and Strategy, Bayo Onanuga, revealed the investment in a statement on Tuesday in Abuja.

This marks Nigeria’s second major gas investment in 18 months, signalling renewed global confidence in the country’s oil and gas industry under President Tinubu’s leadership.

The HI Field project adds to a total upstream investment commitment of over $8 billion since President Tinubu assumed office in 2023.

The President welcomed the development, describing it as a clear validation of his administration’s energy reforms and Nigeria’s growing attractiveness to international investors.

“This major FID announcement by Shell, their second in one year, is a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment,” Tinubu said.

Discovered in 1985, the HI gas project will supply nearly one-third of the feedgas for Nigeria LNG Train 7, which aims to increase the country’s LNG production capacity by 8 million metric tonnes per annum, a 35 per cent rise in output.

The Presidency noted that the HI project follows the Ubeta Non-Associated Gas project and the Bonga North deepwater development, making it the third major oil and gas Final Investment Decision in 18 months.

Together, HI and Ubeta are expected to provide up to 15 per cent of Nigeria LNG’s feedgas requirements across all trains.

Special Adviser on Energy, Olu Arowolo Verheijen, credited the administration’s reforms, including Presidential Directive 40, which introduced a competitive fiscal framework for gas projects, for enabling the project.

“With the Ubeta FID and now the HI FID, we have secured the gas supply needed to make NLNG Train 7 not just possible, but transformative. These projects will strengthen Nigeria’s LNG exports, expand LPG supply domestically, reduce imports, and promote clean cooking access,” Verheijen said.

Shell’s Upstream President, Peter Costello, emphasised the company’s long-term commitment to Nigeria’s energy sector. “Following recent investments like Bonga deep-water, this announcement underlines our ongoing focus on Deepwater and Integrated Gas in Nigeria,” he added.

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The Tinubu administration reaffirmed its dedication to fostering an enabling environment that encourages both local and foreign investment, positioning Nigeria as a competitive force in the global gas market.