President Bola Tinubu has welcomed the news of Shell’s $2 billion Final Investment Decision, (FID), on a new gas project in the shallow offshore HI Field, in OML 144.
When completed, the new Non-Associated Gas (NAG) development project will deliver approximately 350 million standard cubic feet of gas per-day (mmscf/d) from 2028, equivalent to almost a third of the requirements of Nigeria LNG Limited’s Train-7 project.
According to a statement issued by Special Adviser to the President, (Information & Strategy) to the President, Bayo Onanuga, yesterday, the announcement brings total significant upstream investment commitments through Final Investment Decisions (FIDs) in Nigeria’s oil and gas sector to over US $8 billion since President Tinubu assumed office in 2023.
The investment decision is Nigeria’s third major oil and gas FID in the last 18 months, following the Ubeta Non-Associated Gas project and the Bonga-North deepwater project.
“It marks yet another milestone in Nigeria’s journey to unlock its abundant gas resources for domestic and export use”, the statement read in part.
The Ubeta and HI gas projects can supply up to 15 percent of the NLNG’s total feedgas requirements, covering Trains 1 to 7.
Specifically, the development of the HI gas field – discovered four decades ago, in 1985 – is being enabled by Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.
Special Adviser to President Tinubu on Energy, Olu Arowolo Verheijen, said: “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 significantly strengthen the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use – reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households. And this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow”, she said.
The NLNG Train-7 project will expand Nigeria’s LNG production capacity by 8 million metric tonnes annually, 35 percent of current production.
In addition to reinforcing Nigeria’s position in the global gas supply value chain, it will expand domestic gas supply, support job-creation, catalyse economic growth, and stimulate SMEs in host communities.
President Tinubu reiterated his administration’s commitment to creating an enabling environment for Nigeria’s domestic and foreign investors.
Since 2024, President Tinubu has issued targeted directives as part of the industry reform coordinated by the Office of the Special Adviser to the President on Energy. The directives have introduced fiscal incentives, regulatory clarity, operating process simplification, cutting contracting costs, and reducing approval cycle times.
