President Bola Tinubu has expressed strong approval of Shell’s recent $2 billion Final Investment Decision (FID) to develop a new gas project in the shallow offshore HI Field within OML 144.
This Non-Associated Gas (NAG) initiative is set to produce around 350 million standard cubic feet of gas daily starting in 2028, meeting nearly one-third of the gas demand for Nigeria LNG Limited’s Train 7 expansion.
In a statement from presidential spokesperson Bayo Onanuga, this announcement raises the total upstream investment commitments via FIDs in Nigeria’s oil and gas sector to over $8 billion since President Tinubu took office in 2023. This milestone highlights the effectiveness of his reform agenda and the renewed trust of international investors.
This investment marks Nigeria’s third significant oil and gas FID within the past year and a half, following the Ubeta Non-Associated Gas project and the Bonga North deepwater development. It represents a critical step forward in harnessing Nigeria’s vast gas reserves for both domestic consumption and export markets.
Together, the Ubeta and HI gas projects are expected to fulfill up to 15% of NLNG’s total feedgas needs, spanning Trains 1 through 7.
Since early 2024, President Tinubu has implemented targeted reforms through directives issued by the Office of the Special Adviser to the President on Energy. These reforms have introduced groundbreaking fiscal incentives, clarified regulatory frameworks, streamlined operational procedures, reduced contracting expenses, and shortened approval timelines.
Now enshrined in law, these measures have revitalized investor confidence and repositioned Nigeria as a highly attractive destination for energy sector investments.
The trio of landmark FIDs-the HI and Ubeta gas projects alongside the Bonga North deepwater development-serve as flagship initiatives unlocked by the Federal Government to advance the presidential reform directives. Notably, the HI gas field, discovered in 1985, is being developed under Presidential Directive 40, which established a competitive fiscal regime for Non-Associated Gas in onshore and shallow offshore areas.
Olu Arowolo Verheijen, Special Adviser to President Tinubu on Energy, remarked, “With the FIDs for Ubeta and now HI, we have secured the essential gas supply to make NLNG Train 7 not only feasible but transformative. These projects will enhance the reliability of Nigeria’s LNG exports globally while increasing LPG availability domestically-cutting import dependence, boosting foreign exchange earnings, and promoting clean cooking solutions for millions of Nigerian families.”
“This is just the beginning; additional FIDs are forthcoming, demonstrating that sound policies attract investment and generate tangible benefits,” he added.
Peter Costello, Shell’s Upstream President, commented, “Building on recent investments in the Bonga deepwater project, today’s announcement reaffirms our ongoing dedication to Nigeria’s energy sector, focusing on Deepwater and Integrated Gas developments. This upstream project will expand Shell’s leading Integrated Gas portfolio and support Nigeria’s ambition to become a key player in the global LNG market.”
The NLNG Train 7 expansion will increase Nigeria’s LNG output by 8 million metric tonnes annually, representing a 35% boost over current production levels. Beyond strengthening Nigeria’s role in the global gas supply chain, this project will enhance domestic gas availability, create jobs, stimulate economic growth, and empower small and medium enterprises in local communities.
President Tinubu reaffirmed his administration’s commitment to fostering a conducive environment for both local and international investors.
“Shell’s second major FID within a year clearly validates our comprehensive reform agenda and sends a powerful message worldwide that Nigeria is open and ready for business and investment,” President Tinubu concluded.
