$8 BILLION INVESTMENT: SHELL’S NEW GAS PROJECT BOOSTS NIGERIA’S ENERGY SECTOR
GREATRIBUNETVNEWS—President Bola Ahmed Tinubu has welcomed Shell’s $2 billion investment in a new gas project in Nigeria’s shallow offshore HI Field, OML 144. This Final Investment Decision (FID) is expected to deliver approximately 350 million standard cubic feet of gas per day from 2028, equivalent to almost a third of the requirements of Nigeria LNG Limited’s Train 7 project .
Key Highlights
– Total investment commitment: The project brings total significant upstream investment commitments to over $8 billion since President Tinubu assumed office in 2023.
– Gas production : The HI gas field development project will unlock Nigeria’s abundant gas resources for domestic and export use.
– Economic impact : The project is expected to contribute to Nigeria’s economic growth and development.
Government’s Role
The Nigerian government has introduced targeted directives to drive industry reform, including :
– Fiscal incentives: Competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.
– Regulatory clarity: Simplified operating processes and reduced approval cycle times.
– *Investor confidence*: These reforms have restored investor confidence and positioned Nigeria as a competitive investment destination.
Conclusion
The Shell-led project marks another milestone in Nigeria’s journey to unlock its energy potential. With this investment, Nigeria is one step closer to achieving its energy goals and driving economic growth.
Special Adviser to President Tinubu on Energy, Olu Arowolo Verheijen, said: “With the Ubeta FID and now the HI FID, we have secured the gas supply needed to make NLNG Train 7 not just possible, but transformative. These projects will significantly strengthen the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use — reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households. And this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow.”
Peter Costello, Shell’s Upstream President, 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 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 NLNG Train 7 project will expand Nigeria’s LNG production capacity by 8 million metric tonnes annually, 35 percent of current production. In addition to reinforcing Nigeria’s position in the global gas supply value chain, it will expand domestic gas supply, support job creation, catalyse economic growth, and stimulate SMEs in host communities.
President Tinubu reiterated his administration’s commitment to creating an enabling environment for Nigeria’s domestic and foreign investors.
“This major FID announcement by Shell, their second in one year, is a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment”, President Tinubu says in a statement signed by Bayo Onanuga, Special Adviser to the President(Information & Strategy).
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