By Obinna Uballa
Nigeria has secured another landmark investment in its energy sector as Shell Petroleum Development Company (SPDC) announced a Final Investment Decision (FID) worth $2 billion for a new offshore gas project in the HI Field, located in Oil Mining Lease (OML) 144.
President Bola Tinubu, in a statement released by his Special Adviser on Information and Strategy, Bayo Onanuga on Tuesday, welcomed the development, describing it as fresh evidence of global confidence in Nigeria’s oil and gas reforms.
The new Non-Associated Gas (NAG) development is expected to deliver about 350 million standard cubic feet of gas per day (mmscf/d) from 2028, roughly one-third of the gas supply required for the Nigeria LNG Limited (NLNG) Train 7 project.
The HI project marks the country’s third major Final Investment Decision in the oil and gas sector within 18 months of the Tinubu administration, following the $5 billion Bonga North deepwater and Ubeta gas projects. Together, these deals have attracted over $8 billion in new upstream investments since 2023.
According to the statement, the HI and Ubeta gas developments are capable of supplying up to 15 per cent of NLNG’s total feedgas needs, covering Trains 1 to 7.
The Presidency attributed these milestones to Tinubu’s targeted energy sector reforms, coordinated through the Office of the Special Adviser on Energy. Since 2024, the government has introduced fiscal incentives, simplified regulatory processes, and cut approval timelines — measures now enshrined in law to boost investor confidence.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, hailed the Shell FID as another milestone in Nigeria’s gas development strategy.
“With the Ubeta and now the HI FIDs, we’ve secured the gas supply that makes NLNG Train 7 not just possible but transformative,” Verheijen said. “These projects will strengthen Nigeria’s LNG exports, boost domestic LPG supply, and support millions of households through clean cooking initiatives. And this is only the beginning — more FIDs are on the way.”
Shell’s Upstream President, Peter Costello, affirmed the company’s long-term commitment to Nigeria.
“Following recent investment decisions in the Bonga deepwater development, today’s announcement underscores our continued confidence in Nigeria’s energy future,” Costello said. “The HI project will strengthen Shell’s integrated gas portfolio while supporting Nigeria’s ambition to expand its role in the global LNG market.”
The NLNG Train 7 project, currently under construction, aims to increase Nigeria’s liquefied natural gas capacity by 8 million metric tonnes per annum, a 35 per cent rise in output. The expansion is expected to create thousands of jobs, stimulate local economies, and expand the country’s presence in the global gas value chain.
President Tinubu reaffirmed his government’s resolve to sustain reforms that attract local and foreign investment.
“This major FID by Shell, their second in a year, validates our ongoing reforms and signals to the world that Nigeria is open for business,” he said.
