Shell and its partner, Sunlink Energies and Resources Limited, have made a final investment decision on the HI gas project located offshore Nigeria. The project, which is expected to begin production before the end of the decade, will supply 350 million standard cubic feet of gas per day at peak production to Nigeria LNG (NLNG). This will help expand the Bonny Island terminal’s production capacity, supporting Nigeria’s plans to become a more significant player in the global LNG market.
The HI field, discovered in 1985, lies in 100m of water depth, approximately 50km from the shore. The current estimated recoverable resource volumes of the project are approximately 285 million barrels of oil equivalent. The project consists of a wellhead platform with four wells, a pipeline to transport the multiphase gas to onshore at Bonny, and a gas processing plant at Bonny.
The HI project is part of a joint venture between Sunlink Energies and Resources Limited (60%) and SNEPCo (40%), a subsidiary of Shell plc. The production associated with this project will be reported through Shell’s Upstream segment. The estimated peak production and current estimated recoverable resources are 100% total gross figures, with a 50% probability of the estimate being lower and a 50% probability of being higher.
This project contributes to Shell’s commitment to deliver upstream and integrated gas projects coming on stream between 2025 to 2030, with a total peak production of more than 1 million barrels of oil equivalent per day. It also supports Shell’s intent to grow top-line production across its combined Upstream and Integrated Gas business by 1% per year to 2030. LNG plays a key role in the energy transition, producing less greenhouse gas emissions than coal when used to generate electricity, and less emissions than petrol or diesel when used for transport fuel.
The final investment decision on the HI gas project demonstrates Shell’s continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas. The company recently took a final investment decision on the Bonga North project and increased its stake in the Bonga field, consistent with its intention to be a continued disciplined investor in Nigeria’s energy sector. The project is expected to bolster NLNG’s contribution to Nigeria’s national economic development goals, including jobs in construction and operations.