Shell Invests $2 Billion in Nigerian Offshore Gas Project
Shell has given the green light for a $2 billion offshore gas project in Nigeria, marking a significant investment in the country’s energy sector. The project, known as the HI gas field, will supply 350 million standard cubic feet of gas per day to Nigeria LNG, a major liquefied natural gas export facility.
Project Details
- Location: The HI gas field is situated approximately 50 kilometers offshore in waters roughly 100 meters deep.
- Production Start Date: Expected to begin before the end of this decade.
- Stakeholders:
- Shell: 40% interest in the project, with its Nigerian unit leading the development.
- Sunlink Energies: 60% stake in the project.
Impact and Significance
The HI gas project aligns with Shell’s strategy to grow its global LNG volumes by 4-5% annually until 2030. This investment underscores Shell’s confidence in Nigeria’s gas potential, despite challenges and divestments from its onshore oil assets.
- Gas Supply: The project will provide nearly one-third of the gas needed for the Nigeria LNG Train 7 project, supporting the country’s transition from crude dependency to a gas-driven economy.
- Economic Benefits: The investment is expected to boost Nigeria’s LNG exports, contributing to the country’s economic development goals, including job creation in construction and operations.
Partnerships and Ownership
Nigeria LNG is jointly owned by ¹:
- NNPC (Nigerian National Petroleum Company): 49%
- Shell: 25.6%
- TotalEnergies:
- Eni:
This project demonstrates Shell’s commitment to Nigeria’s energy sector, focusing on deepwater and integrated gas opportunities. With production expected to start before 2030, the HI gas project will contribute to Shell’s goal of growing its global LNG volumes .
Conclusion
The $2 billion investment in Nigeria’s offshore gas project demonstrates Shell’s commitment to the country’s energy sector and its focus on energy investment, oil and gas exploration, and LNG production. This project is expected to drive economic growth, create job opportunities, and increase energy production in Nigeria. With the global demand for liquefied natural gas on the rise, this project positions Nigeria as a key player in the global energy market, attracting further foreign investment and supporting the country’s economic development goals. As the project progresses, it will contribute significantly to Nigeria’s energy sector growth and GDP growth, solidifying the country’s status as a major energy hub in Africa
