Shell’s $2bn Offshore Gas FID Signals Fresh Momentum for Nigeria’s LNG Plans

Shell has approved a final investment decision (FID) on a $2 billion offshore gas development that could materially strengthen Nigeria’s liquefied natural gas (LNG) supply chain in the back half of this decade.

The HI field, discovered in 1985, will be developed by Shell Nigeria Exploration and Production Company (SNEPCo) alongside local partner Sunlink Energies.

At peak, it is designed to deliver about 350 million standard cubic feet of gas per day (roughly 60,000 boe/d), with feedstock routed to Nigeria LNG’s Bonny Island plant and aligned to the Train 7 expansion target.

Beyond export upside, policymakers frame the project as part of a wider push to stabilise domestic gas availability for power and industry, while deepening local content. Abuja credits recent fiscal and regulatory directives for restoring investor confidence and speeding approvals, providing a template the government hopes to replicate with additional gas and deepwater FIDs.

For Shell, the move consolidates a pivot toward lower-risk offshore and integrated gas plays in Nigeria, following Bonga North’s FID and a broader global strategy to grow LNG as a transition fuel. Analysts say execution discipline will be critical: logistics, security onshore, and timely delivery of processing infrastructure must be managed to keep schedules and costs on track.

If realised on time, HI’s volumes will help underpin Train 7’s planned lift in liquefaction capacity (to ~30 mtpa), support LPG availability for households, and boost foreign-exchange earnings,an important buffer as Nigeria works to reduce oil-sector volatility.