By Olakunle Oke
Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, in partnership with Sunlink Energies and Resources Limited, has reached a final investment decision (FID) on the HI Gas Project located offshore Nigeria.
The project, upon completion, is expected to deliver 350 million standard cubic feet of gas per day equivalent to about 60,000 barrels of oil at peak production to Nigeria LNG (NLNG), in which Shell holds a 25.6 per cent interest. The gas will serve as feedstock for NLNG’s liquefied natural gas exports to global markets. Production is scheduled to commence before the end of the decade.
Speaking on the development, Shell’s Upstream President, Peter Costello, described the investment as another demonstration of Shell’s long-term commitment to Nigeria’s energy sector. “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.
He added that the HI Gas Project would strengthen Shell’s leading Integrated Gas portfolio while supporting Nigeria’s ambition to become a major player in the global LNG market.
The project will also contribute to the expansion of the Bonny Island NLNG terminal through the Train 7 project, which aims to increase production capacity and boost Nigeria’s LNG output. Shell projects its global LNG volumes to grow by an average of 4–5 per cent annually through 2030.