Nigeria has secured a significant investment in its oil and gas sector, with Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Sunlink Energies and Resources Limited announcing a new Non-Associated Gas (NAG) development project. The project, which is expected to deliver approximately 350 million standard cubic feet of gas per day from 2028, has been welcomed by President Bola Tinubu.
This investment marks the third major oil and gas Final Investment Decision (FID) in Nigeria in the last 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project. The total upstream investment commitments in Nigeria’s oil and gas sector have now surpassed $8 billion since President Tinubu took office in 2023.
According to the Special Adviser on Information and Strategy, Bayo Onanuga, the new project will play a crucial role in unlocking Nigeria’s abundant gas resources for both domestic and export use. The government has introduced fiscal incentives, regulatory clarity, and simplified operating processes to attract investments in the sector.
The Special Adviser to the President on Energy, Olu Arowolo Verheijen, noted that the new projects demonstrate the effectiveness of the administration’s policies. Verheijen stated that the Ubeta FID and the new project have secured the gas supply needed to make NLNG Train 7 a transformative project, which will strengthen the reliability of Nigeria’s LNG exports to global markets and expand LPG supply for domestic use.
Shell’s Upstream President, Peter Costello, highlighted the company’s continued commitment to Nigeria’s energy sector, with a focus on deepwater and integrated gas. President Tinubu reaffirmed his commitment to supporting investors, stating that the major FID announcement by Shell is a clear validation of the government’s reform efforts and a signal that Nigeria is open for business and investment.
The investment is expected to reduce imports, boost foreign exchange earnings, and advance clean cooking access for millions of Nigerian households. With the new project, Nigeria is poised to strengthen its position in the global energy market and attract more investments in the oil and gas sector.