Shell Greenlights HI Offshore Gas Project to Boost Nigeria LNG Supply

Core Viewpoint - Shell's Nigerian subsidiary, SNEPCo, has approved investment in the HI offshore gas development, enhancing Nigeria's LNG exports and supporting Shell's global integrated gas strategy [1] Group 1: Project Overview - The HI field, discovered in 1985, is located about 50 kilometers off Nigeria's coast and is expected to produce up to 350 million standard cubic feet of gas per day, equivalent to around 60,000 barrels of oil equivalent per day, by the end of the decade [2] - The estimated recoverable resource for the HI project stands at approximately 285 million barrels of oil equivalent (mmboe) [2] Group 2: Economic Impact - Production from the HI field will be processed onshore at Bonny Island, contributing to Nigeria LNG (NLNG), where Shell holds a 25.6% interest, and supporting local economic growth through construction and operational employment [3] Group 3: Strategic Commitment - Shell's Upstream President emphasized the company's commitment to Nigeria's energy sector, particularly in Deepwater and Integrated Gas, stating that the HI project will help grow Shell's Integrated Gas portfolio and support Nigeria's ambitions in the global LNG market [4] - The HI development is operated under a joint venture between Sunlink Energies (60%) and SNEPCo (40%), featuring a wellhead platform with four wells and a multiphase gas pipeline to Bonny Island [4] Group 4: Future Outlook - The investment follows Shell's final investment decision (FID) on the Bonga North deepwater project, indicating sustained interest in Nigeria despite challenging fiscal and regulatory conditions [5] - Shell aims to deliver upstream and integrated gas projects achieving a combined 1 million barrels of oil equivalent per day of peak production by 2030 [5] - Liquefied natural gas is central to Shell's energy transition strategy, with a goal to grow global LNG output by 4–5% annually through the end of the decade [6]