Shell Invests $2 Billion in Nigeria’s New Offshore Gas Project

LAGOS, Nigeria – Shell has announced a major investment in an offshore gas project in Nigeria, which aims to produce 350 million standard cubic feet of gas per day. The $2 billion investment, approved on Tuesday, comes at a time when the Nigerian energy sector is seeking revitalization under President Bola Tinubu‘s administration.

The HI offshore gas project, being developed in partnership with Sunlink Energies, is set to significantly bolster Nigeria’s liquefied natural gas (LNG) production capacity. With production expected to begin before the end of the decade, the project will support Nigeria LNG‘s Train 7 expansion, contributing nearly one-third of the gas needed for its operations.

Peter Costello, Shell’s upstream president, emphasized the importance of this project, stating it reinforces Shell’s commitment to Nigeria’s energy future. ‘This project will expand Shell’s Integrated Gas portfolio while supporting Nigeria’s ambitions as a key global LNG player,’ Costello said.

Special adviser to the Nigerian president on energy, Olu Verheijen, described the investment as a demonstration of the government’s success in restoring investor confidence through reform and clarity. ‘These projects will bolster Nigeria’s LNG exports while expanding domestic gas supply, enhancing access to clean cooking for millions,’ Verheijen stated.

Production from the HI field, discovered in 1985 and located approximately 50 kilometers offshore at a depth of around 100 meters, underscores Shell’s strategy to increase its global LNG production by 4 to 5 percent annually until 2030. The gas generated from this project will be essential for Nigeria’s LNG exports from Bonny Island.

This investment follows recent movements in the Nigerian energy sector, including TotalEnergies‘ sale of its stake in an oil mining lease to Shell and Eni‘s Agip for $510 million. Shell now holds a 25.6 percent stake in Nigeria LNG, alongside NNPC, which owns 49 percent.

As the Nigerian government aims to create jobs and stimulate local economies through energy projects, the HI offshore gas project positions Nigeria as a significant player in the global gas market, reflecting renewed foreign investment interests in Africa’s energy resources.