Shell Approves $2 Billion Investment for New Offshore Gas Project in Nigeria
Shell has announced a $2 billion Final Investment Decision (FID) for the development of a new offshore gas project in Nigeria’s HI Field, located in Oil Mining Lease (OML) 144 — a major milestone that underscores renewed investor confidence in the country’s energy sector under President Bola Tinubu’s administration.
According to a statement from the State House, the Non-Associated Gas (NAG) development will deliver around 350 million standard cubic feet of gas per day (mmscf/d) by 2028. This volume represents nearly one-third of the gas required for the Nigeria LNG (NLNG) Train 7 project, currently under construction.
Boost for Nigeria’s Gas Expansion Agenda
The $2 billion investment brings the total value of major upstream oil and gas FIDs in Nigeria to over $8 billion since President Tinubu assumed office in 2023 — a clear sign of renewed investor confidence spurred by ongoing industry reforms and fiscal incentives.
The HI gas project marks the third major FID in just 18 months, following the Ubeta Non-Associated Gas Project and the Bonga North deepwater development. Together, the HI and Ubeta projects are expected to supply up to 15% of NLNG’s total feedgas needs, supporting Nigeria’s goals to expand LNG exports and enhance domestic gas supply.
“Confidence Is Back,” Presidency Says
Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the FID as proof of the administration’s success in restoring confidence through regulatory clarity, fiscal incentives, and streamlined approvals.
“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,” Verheijen said.
“These projects will strengthen the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use — reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households. And this is only the beginning; more FIDs are on the horizon.”
Shell Reaffirms Long-Term Commitment
Peter Costello, Shell’s Upstream President, said the company remains deeply committed to Nigeria’s energy sector and its integrated gas vision.
“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,” Costello stated.
“This project will expand Shell’s leading Integrated Gas portfolio while supporting Nigeria’s ambition to become a stronger player in the global LNG market.”
Tinubu: “Nigeria Is Open for Business”
President Bola Tinubu hailed the announcement as a validation of his administration’s reforms and a strong signal 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,” he said.
Strengthening Nigeria’s LNG Capacity
The ongoing NLNG Train 7 expansion — expected to boost Nigeria’s LNG production capacity by 8 million metric tonnes per annum (mtpa), a 35% increase over current output — remains central to the government’s gas monetization and industrialization strategy.
Officials say the expansion will create thousands of jobs, stimulate local businesses, and support economic growth in host communities, while solidifying Nigeria’s role as a key global LNG supplier.
With three major FIDs now sealed — HI, Ubeta, and Bonga North — Nigeria’s oil and gas sector appears to be entering a new era of revitalization, driven by strong policy direction, investor trust, and a renewed focus on gas as the engine of energy transition and national development.
