Wedoany.com Report-Oct. 16, Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, alongside Sunlink Energies and Resources Limited, has finalized the final investment decision (FID) for the HI gas project located offshore Nigeria.

Upon completion, the project will deliver up to 350 million standard cubic feet per day—equivalent to approximately 60,000 barrels of oil equivalent—at peak output. This supply will support Nigeria LNG (NLNG), in which Shell maintains a 25.6% interest. NLNG focuses on producing and exporting liquefied natural gas (LNG) to international markets. Operations are slated to commence before the decade concludes.

Peter Costello, Shell’s Upstream President, commented: “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. This Upstream project will help Shell grow our leading Integrated Gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market.”

The additional feedstock aligns with the Train 7 project at the Bonny Island terminal, designed to increase production capacity. This supports Shell’s strategy to expand global LNG volumes by an average of 4-5% annually through 2030. It also contributes to Nigeria’s economic objectives, including job creation in construction and ongoing operations.

Discovered in 1985, the HI field sits in about 100 meters of water, roughly 50 km from the coastline. The project’s estimated recoverable resources total around 285 million barrels of oil equivalent (mmboe).

The HI initiative forms part of a joint venture, with Sunlink Energies and Resources Limited holding a 60% stake and SNEPCo owning 40%. Production from this effort will be accounted for within Shell’s Upstream segment.

The development encompasses a wellhead platform featuring four wells at the HI site, a pipeline system to convey multiphase gas onshore to Bonny, and a gas processing facility at Bonny. From there, treated gas will flow to NLNG, while condensate directs to the Bonny Oil and Gas Export Terminal.

The projected peak output and recoverable resources represent 100% gross estimates. The resource figure adheres to a P50 classification under the Society of Petroleum Engineers’ Petroleum Resources Management System, indicating a 50% probability that the actual amount could be higher or lower.

This FID underscores ongoing efforts to harness Nigeria’s offshore resources for reliable energy supply. By integrating with existing infrastructure like Bonny Island, the project enhances efficiency and supports regional energy security. The collaboration between SNEPCo and Sunlink leverages combined strengths to advance development timelines.

The HI project’s focus on gas processing and export positions it to contribute meaningfully to global LNG demand. It aligns with broader initiatives to optimize deepwater assets, fostering growth in the integrated gas sector. As Nigeria strengthens its LNG capabilities, such projects play a key role in economic diversification and workforce development.

Overall, the HI gas project represents a strategic step toward meeting future energy needs. With production on the horizon, it promises to bolster Shell’s portfolio while aiding Nigeria’s ambitions in the international energy landscape.