KEY POINTS
- Shell has approved a $2 billion offshore gas project in Nigeria with Sunlink Energies.
- The HI field will supply 350 million cubic feet of gas daily to Nigeria LNG’s Train 7 expansion.
- The project strengthens Shell’s LNG growth strategy amid its gradual exit from Nigerian onshore operations.
Shell Plc has approved a $2 billion offshore gas development in Nigeria, deepening its investment footprint in the West African nation’s energy sector as it pivots further toward liquefied natural gas (LNG) production.
The Anglo-Dutch oil giant said on Tuesday that the project, known as the HI offshore gas field, will be developed jointly with its local partner, Sunlink Energies. Once completed, the field is expected to supply around 350 million standard cubic feet of gas per day to Nigeria LNG (NLNG), the country’s flagship LNG export facility.
The Nigerian government said the investment underscores Shell’s confidence in Nigeria’s gas potential despite years of operational hurdles, security challenges and divestments from its onshore oil assets.
The company, which retains a strong presence in Nigeria’s offshore and gas sectors, aims to grow global LNG output by 4% to 5% annually through the end of the decade.
Nigeria LNG, jointly owned by the state-run Nigerian National Petroleum Company (49%), Shell (25.6%), TotalEnergies, and Italy’s Eni, has long been central to the country’s drive to expand its natural gas exports.
Long-delayed field to support Train 7 expansion
The HI field, located about 50 kilometres offshore in waters roughly 100 metres deep, was originally discovered in 1985 but stalled for decades due to infrastructure and financing bottlenecks. Under the new plan, production is expected to begin before 2030, providing a substantial boost to gas supplies for the NLNG Train 7 expansion, currently one of Nigeria’s most ambitious energy infrastructure projects.
Olu Verheijen, energy adviser to President Bola Tinubu, said the project will provide nearly one-third of the gas feedstock needed for Train 7, helping to accelerate Nigeria’s transition from crude dependency to a gas-driven economy.
Shell’s local unit will hold a 40% stake in the venture, while Sunlink Energies will control the remaining 60%. The U.K.-listed firm described the development as a key step toward “building a resilient gas portfolio that supports energy access and decarbonisation goals.”
Last month, Nigeria’s oil regulator cleared a separate $510 million deal allowing TotalEnergies to divest its 12.5% stake in Oil Mining Lease 118, which hosts the offshore Bonga field, to project operators Shell and Eni—signalling continued consolidation in the nation’s offshore sector.
With Shell’s latest approval, Nigeria looks set to reinforce its position as one of Africa’s major gas exporters, even as global energy companies accelerate diversification into cleaner fuels.
