- The Shell $2 billion offshore gas project in Nigeria will supply 350 million standard cubic feet of LNG daily.
- Nigeria’s $2 billion offshore gas project will strengthen the nation’s LNG capacity and drive global energy expansion.
Shell has approved a $2 billion offshore gas project in Nigeria with Sunlink Energies. The move marks a major step in Nigeria’s gas sector and reinforces Shell’s long-term investment in the country’s offshore industry.
Once completed, the HI offshore gas field will deliver 350 million standard cubic feet of gas daily to Nigeria LNG. The facility will process and export liquefied natural gas to international markets. This project strengthens Nigeria’s role as a key LNG supplier.
Furthermore, the initiative shows Shell’s dedication to expanding its global LNG business and highlights its continued presence in Nigeria’s energy market. The Nigerian government confirmed that the $2 billion investment is vital to the nation’s energy transition plan. In addition, the project supports economic diversification and job creation.
Shell’s focus on cleaner energy reflects its shift from onshore oil operations affected by spills and theft. This change aligns with global trends towards sustainability and reduced carbon emissions.
At the same time, the Nigerian National Petroleum Company (NNPC) owns 49% of Nigeria LNG. Shell holds a 25.6% share, making it the second-largest stakeholder. TotalEnergies and Eni also play key roles in supporting the project’s growth and export goals.
Moreover, the HI field, discovered in 1985, is about 50 kilometres offshore and lies 100 metres deep. Production should begin before the end of this decade. The project fits Shell’s plan to boost global LNG output by 4% to 5% each year until 2030.
Meanwhile, Olu Verheijen, Special Adviser on Energy to the Nigerian President, said the HI field would supply nearly one-third of the gas for the Nigeria LNG Train 7 project. This will improve national gas output and strengthen export capacity.
Shell’s Nigerian subsidiary owns 40% of the project, while Sunlink Energies holds 60%. Their partnership highlights the growing role of private companies in Nigeria’s offshore energy growth.
Recently, Nigeria’s oil regulator approved a $510 million deal. It allows TotalEnergies to sell its 12.5% interest in Oil Mining Lease 118. The lease includes the offshore Bonga oilfield, now managed by Shell and Eni’s Agip. This move expands Shell’s offshore portfolio and supports its focus on deepwater gas projects.
In conclusion, the Shell $2 billion offshore gas project in Nigeria represents a strong commitment to energy security. It will enhance LNG exports, create economic value, and promote a cleaner, gas-powered future for Nigeria.