Tinubu Applauds Shell’s $2bn Gas Investment as Boost for Nigeria’s Energy Sector

Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, in partnership with Sunlink Energies and Resources Limited, has reached a Final Investment Decision (FID) on the $2 billion HI Gas Project, located offshore Nigeria.

President Bola Tinubu, in a statement on Tuesday, hailed the milestone as a strong vote of confidence in Nigeria’s energy sector and a direct outcome of his administration’s sweeping industry reforms aimed at restoring investor trust and attracting global capital.

According to Shell, the HI Gas Project is expected to deliver up to 350 million standard cubic feet of gas per day—equivalent to about 60,000 barrels of oil equivalent—at peak production to Nigeria LNG (NLNG), where Shell holds a 25.6 per cent stake. Production is scheduled to commence before the end of this decade.

Shell’s Upstream President, Peter Costello, noted that the project underscores Shell’s long-term commitment to Nigeria’s energy sector. “This development supports our strategy to expand our integrated gas portfolio while helping Nigeria strengthen its role in the global LNG market,” he said.

The HI field, discovered in 1985 and located about 50 kilometres offshore in 100 metres of water, is estimated to hold recoverable resources of around 285 million barrels of oil equivalent. The project, jointly owned by Sunlink Energies (60%) and SNEPCo (40%), will include a wellhead platform with four wells, a subsea pipeline to Bonny Island, and a gas processing facility to feed the NLNG Train 7 expansion.

Shell stated that the project aligns with its plan to increase global LNG output by 4–5 per cent annually through 2030, while supporting Nigeria’s economic development through job creation and industrial growth.

In a statement by his spokesperson, Bayo Onanuga, President Tinubu described the decision as a landmark achievement and the third major oil and gas FID secured under his administration, following the Ubeta Non-Associated Gas Project and the Bonga North Deepwater Project. Combined, these FIDs represent over $8 billion in new investments since he took office in 2023.

“These projects mark another step in unlocking Nigeria’s vast gas reserves for domestic and export use,” Tinubu said, adding that the HI and Ubeta developments will provide about 15 per cent of NLNG’s total feed gas requirements.

Special Adviser to the President on Energy, Olu Verheijen, explained that the reforms introduced since 2024—covering fiscal incentives, regulatory streamlining, and reduced approval times—have repositioned Nigeria as a competitive investment hub. “With the Ubeta and HI FIDs, we’ve secured the gas supply necessary to make NLNG Train 7 not just possible, but transformative,” she said.

The presidency noted that the Train 7 expansion will increase Nigeria’s LNG production capacity by eight million metric tonnes annually, or 35 per cent of current output, while boosting domestic gas availability, job creation, and industrial activity in host communities.

President Tinubu reaffirmed his government’s commitment to fostering an enabling environment for investors, saying, “This second major FID by Shell in one year is a clear validation of our reforms and proof that Nigeria is open for business.”