Shell Nigeria Exploration and Production Company Limited, a subsidiary of Shell plc, in collaboration with Sunlink Energies and Resources Limited, has approved the final investment decision for the HI Gas Project off the coast of Nigeria.

According to a Shell statement on Tuesday, once completed, the project is expected to produce 350 million standard cubic feet of gas per day, equivalent to around 60,000 barrels of oil equivalent at peak—supplying Nigeria LNG, where Shell holds a 25.6 per cent stake.

The NLNG facility processes and exports liquefied natural gas to global markets.

“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,” Peter Costello, Shell’s Upstream President, was quoted as saying in the statement.

“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,” he added.

Discovered in 1985, the HI field is estimated to contain around 285 million barrels of oil equivalent (mmboe) in recoverable resources.

Shell noted that developing the project is expected to significantly enhance feedgas supply to the NLNG plant, particularly supporting its Train 7 expansion, which aims to raise Bonny Island’s annual LNG production capacity from 22 million to about 30 million tonnes.

Reacting swiftly to Shell’s announcement, the Special Adviser to the President on Energy, Mrs. Olu Verheijen, described the decision as one that will unlock.

“Nigeria’s vast gas potential to drive industrialization, create jobs, and power a cleaner, more prosperous future.

“It is the third major oil and gas FID in the last 18 months, following the Ubeta gas project and Bonga North deepwater, bringing total upstream investment commitments to over $8 billion since President Bola Ahmed Tinubu assumed office in 2023,” she added.