Shell, Sunlink Approve Gas Project Offshore Nigeria

Deal set to boost gas supply to NLNG and Nigeria’s energy exports

Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, and its partner, Sunlink Energies and Resources Limited, have signed the Final Investment Decision (FID) for the HI gas project, a major offshore development aimed at expanding Nigeria’s gas supply capacity.

In a statement on Tuesday, Shell said the HI project, located about 50 kilometres off Nigeria’s coast, will deliver up to 350 million standard cubic feet of gas per day, roughly 60,000 barrels of oil equivalent, to the Nigeria LNG (NLNG) facility at Bonny Island once production begins later this decade.

The project, first discovered in 1985, sits at a water depth of 100 metres and holds an estimated recoverable reserve of about 285 million barrels of oil equivalent (mmboe). It will feed into NLNG’s ongoing Train 7 expansion, designed to increase output for both domestic use and global LNG exports.

Shell’s Upstream President, Peter Costello, said the development underscores the company’s long-term commitment to Nigeria’s energy future, focusing on deepwater and integrated gas operations. He added that the project aligns with Shell’s plan to grow its global LNG volumes by 4–5% annually until 2030.

The HI project will feature a wellhead platform with four production wells, a subsea pipeline to transport gas to Bonny, and a new onshore processing plant. From there, gas will move to NLNG facilities while condensates will be directed to the Bonny Oil and Gas Export Terminal.

Under the agreement, Sunlink Energies will hold a 60% stake in the venture, while Shell retains 40%. Production from the project will be reported under Shell’s upstream segment.

Beyond boosting LNG feedstock, Shell said the project will support Nigeria’s economic goals through job creation in construction and operations, while also contributing to cleaner energy targets, as LNG emits fewer greenhouse gases than coal and diesel.

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The company noted that the HI project is part of its broader 2025–2030 growth plan, which aims to bring new upstream and integrated gas projects online with a combined peak production exceeding one million barrels of oil equivalent per day.

Shell’s latest decision follows its investment in the Bonga North project and the recent increase of its stake in the Bonga field, further reinforcing its position as a disciplined and long-term player in Nigeria’s deepwater and gas sectors.