Nigeria has recorded another major milestone in its oil and gas sector, with Shell announcing a $2 billion Final Investment Decision (FID) on a new offshore gas project, marking the second major gas investment under President Bola Ahmed Tinubu’s administration.
The project, located in the shallow offshore HI Field within Oil Mining Lease (OML) 144, is expected to produce about 350 million standard cubic feet of gas per day (mmscf/d) from 2028 — nearly one-third of the gas needed for the Nigeria LNG Limited’s (NLNG) Train 7 project.
According to the Presidency, the new development brings total upstream investment commitments through FIDs to over $8 billion since President Tinubu assumed office in 2023. The move, it said, underscores the success of his sweeping energy sector reforms and renewed global investor confidence in Nigeria.
The HI Non-Associated Gas (NAG) project is the third major FID in 18 months, following the Ubeta Gas Project and Bonga North Deepwater Project. Together, the HI and Ubeta gas projects could supply up to 15 percent of NLNG’s total feedgas requirements, ensuring long-term supply stability.
The Tinubu administration has implemented a series of policy reforms since 2024 through the Office of the Special Adviser to the President on Energy, introducing fiscal incentives, regulatory clarity, streamlined contracting processes, and reduced approval timelines. These efforts have been credited with restoring Nigeria’s competitiveness in the global energy investment space.
Special Adviser on Energy, Olu Arowolo Verheijen, hailed the Shell investment as a breakthrough moment:
“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 strengthen Nigeria’s LNG exports, expand domestic LPG supply, and boost clean cooking access for millions of Nigerian households.”
Shell’s Upstream President, Peter Costello, reaffirmed the company’s long-term commitment to Nigeria, saying the new project would help Shell expand its Integrated Gas portfolio while supporting Nigeria’s ambition to become a major global LNG player.
The NLNG Train 7 expansion will increase Nigeria’s LNG production capacity by eight million metric tonnes annually — a 35 percent rise — with significant benefits for job creation, foreign exchange earnings, and local economic development.
President Tinubu welcomed Shell’s announcement, describing it as “a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment.”