Shell Okays $2bn Gas Project As Tinubu Hails Energy Investments

President Bola Tinubu has lauded the decision by Shell Petroleum Development Company to approve a $2bn Final Investment Decision (FID) for the development of the HI Non-Associated Gas (NAG) project in Nigeria’s shallow offshore OML 144.

The president described it as another strong vote of confidence in his administration’s reforms in the oil and gas sector.

The new project, which will deliver an estimated 350 million standard cubic feet of gas per day (mmscf/d) when production commences in 2028, is expected to supply nearly one-third of the feedstock required for Nigeria LNG Limited’s (NLNG) Train 7 project.

In a statement on Tuesday, Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, said the Shell investment brings total major upstream commitments secured under the Tinubu administration to over $8bn since May 2023.

It marks the third major oil and gas FID in the last 18 months, following the Ubeta Non-Associated Gas and the Bonga North deepwater projects.

According to the statement, the HI and Ubeta gas projects together can supply up to 15 per cent of NLNG’s total feedgas requirements across Trains 1 to 7, reinforcing Nigeria’s standing as a major player in the global liquefied natural gas market.

Tinubu said the Shell decision underscores renewed investor confidence in Nigeria’s energy sector, attributing it to ongoing reforms aimed at making the country more competitive for investment.

“This major FID announcement by Shell, their second in one year, is a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment,” the president stated.

The administration, through the Office of the Special Adviser on Energy, has since 2024 issued targeted directives introducing fiscal incentives, regulatory clarity, and streamlined operating procedures to cut contracting costs and shorten approval timelines.

These reforms, now enshrined in legislation, are part of broader measures to attract new capital inflows into the sector.

Special Adviser to the President on Energy, Mrs Olu Arowolo Verheijen, described the HI project as transformative for Nigeria’s gas supply security and LNG competitiveness.

“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 households,” she said.

Discovered in 1985, the HI gas field’s development is being enabled by Presidential Directive 40, which introduced a new fiscal framework for Non-Associated Gas in onshore and shallow offshore assets.

The directive was designed to unlock long-stalled resources and accelerate project development through competitive terms.

Peter Costello, Shell’s Upstream President, reaffirmed the company’s commitment to Nigeria’s energy sector, noting that the new FID aligns with Shell’s strategy to expand its Integrated Gas portfolio globally.

“Following recent investment decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector,” Costello said.

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

The NLNG Train 7 project, already under construction, will expand the country’s liquefaction capacity by 8 million metric tonnes per annum, an increase of about 35 per cent from current levels.

Beyond export earnings, the government expects the project to stimulate job creation, boost domestic gas supply, and catalyse economic activity in host communities.

Tinubu reiterated that his administration remains committed to creating a stable and predictable investment climate for both local and international partners.

“Our reforms are working, and we will continue to deepen them to ensure that Nigeria remains an attractive and competitive investment destination,” he said.

With three landmark FIDs, Ubeta, HI, and Bonga North, now secured, the government says it expects more investment announcements in the coming months as ongoing policy initiatives continue to unlock Nigeria’s vast energy potential.

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Shell Okays $2bn Gas Project As Tinubu Lauds Energy Investments

Chris Ugwu

President Bola Tinubu has lauded the decision by Shell Petroleum Development Company to approve a $2bn Final Investment Decision (FID) for the development of the HI Non-Associated Gas (NAG) project in Nigeria’s shallow offshore OML 144.

The president described it as another strong vote of confidence in his administration’s reforms in the oil and gas sector.

The new project, which will deliver an estimated 350 million standard cubic feet of gas per day (mmscf/d) when production commences in 2028, is expected to supply nearly one-third of the feedstock required for Nigeria LNG Limited’s (NLNG) Train 7 project.

In a statement on Tuesday, Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, said the Shell investment brings total major upstream commitments secured under the Tinubu administration to over $8bn since May 2023.

It marks the third major oil and gas FID in the last 18 months, following the Ubeta Non-Associated Gas and the Bonga North deepwater projects.

According to the statement, the HI and Ubeta gas projects together can supply up to 15 per cent of NLNG’s total feedgas requirements across Trains 1 to 7, reinforcing Nigeria’s standing as a major player in the global liquefied natural gas market.

Tinubu said the Shell decision underscores renewed investor confidence in Nigeria’s energy sector, attributing it to ongoing reforms aimed at making the country more competitive for investment.

“This major FID announcement by Shell, their second in one year, is a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment,” the president stated.

The administration, through the Office of the Special Adviser on Energy, has since 2024 issued targeted directives introducing fiscal incentives, regulatory clarity, and streamlined operating procedures to cut contracting costs and shorten approval timelines.

These reforms, now enshrined in legislation, are part of broader measures to attract new capital inflows into the sector.

Special Adviser to the President on Energy, Mrs Olu Arowolo Verheijen, described the HI project as transformative for Nigeria’s gas supply security and LNG competitiveness.

“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 households,” she said.

Discovered in 1985, the HI gas field’s development is being enabled by Presidential Directive 40, which introduced a new fiscal framework for Non-Associated Gas in onshore and shallow offshore assets.

The directive was designed to unlock long-stalled resources and accelerate project development through competitive terms.

Peter Costello, Shell’s Upstream President, reaffirmed the company’s commitment to Nigeria’s energy sector, noting that the new FID aligns with Shell’s strategy to expand its Integrated Gas portfolio globally.

“Following recent investment decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector,” Costello said.

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

The NLNG Train 7 project, already under construction, will expand the country’s liquefaction capacity by 8 million metric tonnes per annum, an increase of about 35 per cent from current levels.

Beyond export earnings, the government expects the project to stimulate job creation, boost domestic gas supply, and catalyse economic activity in host communities.

Tinubu reiterated that his administration remains committed to creating a stable and predictable investment climate for both local and international partners.

“Our reforms are working, and we will continue to deepen them to ensure that Nigeria remains an attractive and competitive investment destination,” he said.

With three landmark FIDs, Ubeta, HI, and Bonga North, now secured, the government says it expects more investment announcements in the coming months as ongoing policy initiatives continue to unlock Nigeria’s vast energy potential.