Shell, Sunlink approve HI gas project to deliver 350m scf/day

Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, in partnership with Sunlink Energies and Resources Limited, on Tuesday announced the final investment decision (FID) on the HI Gas Project offshore Nigeria.

A statement by Shell said that, upon completion, the project will deliver 350 million standard cubic feet of gas per day — equivalent to about 60,000 barrels of oil equivalent — at peak production to Nigeria LNG (NLNG), in which Shell holds a 25.6% interest.

The NLNG plant produces and exports liquefied natural gas (LNG) to markets around the world.

“Following recent investment decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas,” Peter Costello, Shell’s Upstream President, was quoted as saying in the statement.

“This Upstream project will help Shell grow our leading Integrated Gas portfolio, while supporting Nigeria’s plans to become a more significant player in the global LNG market,” he added.

The HI field, discovered in 1985, is estimated to hold approximately 285 million barrels of oil equivalent (mmboe) in recoverable resources.

According to Shell, development of the project is expected to significantly boost feedgas supply to the NLNG plant, particularly its Train 7 expansion, which aims to increase Bonny Island’s annual production capacity from 22 million to around 30 million tonnes of LNG.

Shell said the HI project is part of a joint venture between Sunlink Energies and Resources Limited (60per cent) and SNEPCo (40%).

The project consists of a wellhead platform with four wells, to be installed at the HI field location, a pipeline to transport the multiphase gas to onshore at Bonny, and a gas processing plant at Bonny, from where the processed gas will be transported to NLNG and the condensate to the Bonny Oil and Gas Export Terminal.

Shell took a final investment decision on the Bonga North project in December 2024 and recently increased its stake in the Bonga field, consistent with the company’s intention to be a continued disciplined investor in Nigeria’s energy sector through its Deep Water and Integrated Gas businesses.