Shell subsidiary Shell Nigeria Exploration and Production Company (SNEPCo), together with its partner Sunlink Energies and Resources, has taken the final investment decision (FID) on the HI gas project offshore Nigeria.
This project aims to deliver 350 million standard cubic feet per day (mscf/d) of gas, or around 60,000 barrels of oil equivalent, to Nigeria LNG (NLNG).
NLNG, in which Shell holds a 25.6% interest, is involved in the production and export of liquefied natural gas (LNG) worldwide.
The HI gas project is expected to begin production before the end of this decade.
This rise in feedstock to NLNG through the Train 7 project is expected to enhance the Bonny Island terminal's production capacity, aligning with Shell’s strategy to increase its global LNG production by 4–5% annually until 2030.
Shell upstream president Peter Costello said: “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 deep-water 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.”
Discovered in 1985, the HI gas field is located approximately 50km offshore at a water depth of 100m. Its recoverable resources are estimated at 285 million barrels of oil equivalent (mboe).
The project is a joint venture between SNEPCo, which holds a 40% stake, and Sunlink Energies and Resources, which owns the remaining 60% stake.
The H1 gas project includes the installation of a wellhead platform with four wells, a pipeline to transport gas to Bonny and a gas processing facility at Bonny.
From the Bonny facility, the processed gas will be delivered to NLNG, with condensate directed to the Bonny Oil and Gas Export Terminal.
Shell said that the project supports its commitment to bring upstream and integrated gas projects online between 2025 and 2030, with a total peak production of one million barrels of oil equivalent per day.
The company aims to increase top line production across its Upstream and Integrated Gas business by 1% annually until 2030.
Last month, Nigeria gave the green light to TotalEnergies’ $510m (€438.26m) divestment of its interest in Oil Mining Lease 118, which includes the Bonga field, to Shell and Nigerian Agip Exploration.
