Shell plc’s Nigerian subsidiary, Shell Nigeria Exploration and Production Company Limited (SNEPCo), has approved investment in HI’s offshore gas development, marking another important step in expanding Nigeria’s liquefied natural gas (LNG) exports and reinforcing Shell’s integrated global gas strategy.
The HI field, discovered in 1985 and located about 50 kilometers off the Nigerian coast in 100 meters of water, is expected to produce up to 350 million standard cubic feet of gas per day, equivalent to about 60,000 barrels of oil equivalent per day, by the end of this decade. The project’s estimated recoverable resource amounts to approximately 285 million barrels of oil equivalent (mmboe).
HI production will be processed onshore at Bonny Island, where the gas will be fed to Nigeria LNG (NLNG), in which Shell has a 25.6% stake. The project is aligned with the current expansion of Train 7, whose objective is to increase the terminal’s capacity by 35%. The additional gas supply will boost Nigeria’s LNG exports and support local economic growth through construction and operational employment.
Shell Upstream president Peter Costello said the decision underlines the company’s “continued commitment to Nigeria’s energy sector”, particularly in deepwater and integrated gas. He added that the HI project “will help Shell grow our leading integrated gas portfolio while supporting Nigeria’s ambition to become a larger player in the global LNG market.”
The HI development, operated under a joint venture between Sunlink Energies (60%) and SNEPCo (40%), will feature a wellhead platform with four wells, a multi-phase gas pipeline to Bonny Island and an onshore processing plant. Condensates from the project will be exported through the Bonny Oil and Gas Export Terminal.
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The investment comes less than a year after Shell’s FID in the deepwater Bonga North project and its increased stake in the Bonga field, indicating sustained interest in Nigeria despite challenging fiscal and regulatory conditions. These developments contribute to Shell’s Capital Markets Day 2025 commitment to deliver upstream and integrated gas projects reaching a combined peak production of 1 million boe/d by 2030.
Liquefied natural gas remains central to Shell’s energy transition strategy, offering lower emissions than coal and petroleum fuels. The company aims to increase its global LNG production by 4% to 5% annually until the end of the decade, taking advantage of projects like HI to meet growing global demand.