Shell Nigeria and partner Sunlink Energies announced Tuesday a $2 billion investment for the HI gas project in the shallow offshore waters of Oil Mining Lease 144, a development expected to strengthen Nigeria’s energy security and gas exports.
The project aims to produce 350 million standard cubic feet of gas per day starting in 2028.
The gas will be processed onshore at Bonny Island and delivered to the Nigeria LNG (Liquefied natural gas) facility, supporting both domestic demand and international supply.
The HI project is being developed under a joint venture between Sunlink Energies and Resources Limited, which holds a 60% stake, and Shell Nigeria Exploration and Production Company (SNEPCo), which owns the remaining 40%.
The development includes a wellhead platform with four wells, a subsea pipeline to Bonny Island, and a gas processing plant.
Processed gas will be transported to NLNG, while condensates will be sent to the Bonny Oil and Gas Export Terminal.
“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,” said Peter Costello, Shell’s Upstream President.
“This Upstream project will help Shell grow our leading Integrated Gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market.”
Shell said the HI development supports its global production goal of delivering upstream and integrated gas projects between 2025 and 2030 with a combined peak output of more than 1 million barrels of oil equivalent per day.
President Bola Ahmed Tinubu welcomed the investment, crediting it to ongoing economic reforms.
According to the presidency, the deal brings total upstream investment commitments since May 2023 to more than $8 billion.
Liquefied natural gas, or LNG, is considered a lower-emissions alternative to coal and oil and plays a key role in global energy transition efforts.
LAGOS, Nigeria – Bantu Gazette
