What's Happening?
Shell Nigeria Exploration and Production Company Limited has approved a $2 billion investment in the HI gas project offshore Nigeria. This project aims to supply feed gas to Nigeria LNG's Train 7 expansion. The HI field, located 50 km off the Nigerian coast, will produce 350 million standard cubic feet of gas per day at peak output. The joint venture between Sunlink Energies and Shell includes a wellhead platform, pipeline, and gas processing facility. Production is expected to start before the end of the decade.
Why It's Important?
The project is significant for Nigeria's energy sector, enhancing its position in the global LNG market. It aligns with Shell's strategy to increase LNG production by 4-5% annually through 2030, supporting Nigeria's ambitions to become a major LNG player. The investment underscores Shell's commitment to Nigeria's deepwater and gas value chains, contributing to economic growth and energy security. It also reflects the ongoing global shift towards cleaner energy sources.
What's Next?
Production startup is anticipated before the end of the decade, with Shell aiming to bring new upstream and integrated gas projects online by 2030. The project will support Nigeria's energy infrastructure and may attract further investments in the sector. Stakeholders will monitor the project's progress and its impact on local communities and the environment.
