Shell Nigeria Exploration and Production Company Limited (SNEPCo), a key subsidiary of the UK-headquartered energy giant, has joined forces with its partner, Sunlink Energies and Resources Limited, to take a pivotal Final Investment Decision (FID) on a significant new gas development located in Nigerian waters. This strategic approval targets the HI field and is explicitly designed to supply a substantial volume of feedstock to Nigeria LNG (NLNG), thereby supporting the expansion of the country’s liquefied natural gas exports.
The new project is comprehensive and includes the construction of a wellhead platform equipped with four wells. The infrastructure will also feature an essential pipeline tasked with transporting the complex, multiphase gas mixture to the mainland at Bonny Island. Once there, the gas will be channelled into a newly planned processing plant, before the finished, processed gas is sent to NLNG. Any condensate produced alongside the gas will be directed to the Bonny Oil and Gas Export Terminal. The energy major has a 25.6 per cent holding in NLNG, which currently accounts for approximately seven per cent of the world’s total LNG supply, underscoring the project’s global relevance. Shell’s partners in the wider NLNG venture include NNPC, TotalEnergies, and Eni.
Shell has set a target for the HI project to come online by the close of the decade. Once it reaches its peak production capacity, the development is anticipated to deliver an impressive 350 million standard cubic feet of gas daily, an amount equivalent to around 60 thousand barrels of oil equivalent, directly to the NLNG facility. Peter Costello, Shell’s Upstream President, noted that the decision underscores the company’s continuing commitment to Nigeria’s energy sector, with a renewed strategic focus on Deepwater operations and Integrated Gas solutions. Mr Costello also highlighted that the new upstream venture will significantly assist Shell in growing its leading Integrated Gas portfolio, whilst simultaneously supporting Nigeria’s own ambitious plans to become an even more substantial player in the competitive global LNG market.
The recoverable resources from the HI field, which was initially discovered in 1985 and sits in a water depth of 100 metres, are estimated to be approximately 285 million barrels of oil equivalent. The project’s successful commissioning and operation will feed the expansion of the Bonny terminal, which already runs six processing units and is planning to add a crucial seventh unit, known as Train 7. This increased gas supply is directly aligned with Shell’s corporate strategy to boost its worldwide LNG volumes, aiming for an average annual growth rate of four to five per cent through to 2030. The field is a joint venture, with Sunlink holding a 60 per cent interest and SNEPCo holding the remaining 40 per cent. This investment follows other recent FIDs in Nigeria, including work related to the Bonga deep-water development.
