Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, and Sunlink Energies and Resources Limited have announced a Final Investment Decision (FID) on the HI Gas Project located offshore Nigeria.
In a statement released on Tuesday, Shell said the project is designed to deliver 350 million standard cubic feet of gas per day, equivalent to about 60,000 barrels of oil equivalent at peak production to the Nigeria LNG (NLNG) facility on Bonny Island, where Shell holds a 25.6% interest. The project is expected to commence production before the end of this decade.
“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 project will help grow Shell’s leading Integrated Gas portfolio while supporting Nigeria’s ambitions to become a more significant player in the global LNG market.”
According to Shell, the increased gas feedstock will support NLNG’s Train 7 expansion, which aims to boost the Bonny Island terminal’s overall production capacity.
The company noted that the HI project aligns with its global strategy to increase LNG production volumes by 4–5% annually through 2030, while also advancing Nigeria’s economic development through job creation in construction and operations.
Project Details
The HI field, discovered in 1985, lies in 100 metres of water, about 50 kilometres off Nigeria’s coastline. It holds an estimated 285 million barrels of oil equivalent (mmboe) in recoverable resources.
The development will be executed under a joint venture between Sunlink Energies and Resources Limited (60%) and SNEPCo (40%), with production reported through Shell’s Upstream segment.
The project infrastructure will include:
- A wellhead platform with four production wells.
- A pipeline system transporting multiphase gas to Bonny Island.
- A gas processing plant at Bonny, where processed gas will feed into NLNG, while condensates will be routed to the Bonny Oil and Gas Export Terminal.
Shell said the resource estimates and peak production figures are based on P50 classifications under the Society of Petroleum Engineers’ Petroleum Resources Classification System, meaning there is an equal probability of actual figures being higher or lower than the estimate.
Strategic Impact
The HI Gas Project contributes to Shell’s Capital Markets Day 2025 commitment to deliver a series of new Upstream and Integrated Gas projects between 2025 and 2030, targeting a combined peak production of more than 1 million barrels of oil equivalent per day (boe/d).
The development also supports Shell’s plan to grow production across its Upstream and Integrated Gas businesses by 1% annually through 2030.
Shell emphasized the role of liquefied natural gas (LNG) in the energy transition, noting that it emits significantly less greenhouse gas than coal when used for power generation and less than petrol or diesel when used as transport fuel.
This latest FID follows Shell’s Bonga North project, approved in December 2024, and its recent increase in equity in the Bonga field, moves that underscore the company’s continued investment in Nigeria’s Deepwater and Integrated Gas sectors.
