Nigeria’s energy sector has received a powerful jolt of optimism with Shell’s approval of a $2 billion offshore gas development in the HI Field, located in Oil Mining Lease (OML) 144. The project, a partnership between Shell Nigeria Exploration and Production Company (SNEPCo) and Sunlink Energies and Resources Limited, is expected to produce approximately 350 million standard cubic feet of gas per day when operations commence in 2028. Beyond being a landmark investment, it is Nigeria’s second major gas project in just 18 months, signalling renewed investor confidence in the country’s gas-focused industrialisation drive under President Bola Tinubu’s administration.
Coming at a time when the Federal Government has secured upstream Final Investment Decisions (FIDs) totalling more than $8 billion President Bola Tinubu assumed office in 2023, the Shell–Sunlink project demonstrates that the administration’s reforms in energy governance, fiscal clarity, and local participation are beginning to yield tangible results. More importantly, it provides feedstock for Nigeria Liquefied Natural Gas’s (NLNG) Train 7, strengthening Nigeria’s place in the global LNG supply chain and deepening the country’s push for gas-based economic diversification.
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In a world still struggling to reconcile the twin imperatives of decarbonisation and energy security, natural gas has become the transitional fuel of choice. Global LNG demand continues to surge, expanding by nearly 5 percent annually, driven by Asian importers, Europe’s efforts to diversify away from Russian supply, and emerging markets seeking cleaner energy. According to the International Energy Agency (IEA), natural gas will remain vital in the global energy mix through at least 2040, provided producers manage methane emissions and reduce upstream carbon intensity.
This global trend has spurred energy giants like Shell to intensify investments in integrated gas projects. For Shell, LNG forms the backbone of its medium-term growth strategy, with planned output increases of 4–5 percent annually until 2030. The Nigeria HI Field project thus fits neatly into Shell’s broader energy portfolio, a blend of high-value, lower-carbon gas developments aligned with the world’s transition goals.
Shell’s $2 Billion Play: The HI Project and Its Structure
The HI Field development will involve the drilling of up to five wells and the installation of subsea infrastructure to deliver gas to the existing Bonga floating production storage and offloading (FPSO) vessel. From there, it will be transported through Shell’s offshore pipelines to supply the NLNG plant in Bonny Island, Rivers State. The project is expected to reach first gas by 2028, with peak output at around 350 million standard cubic feet per day.
Sunlink Energies, a Nigerian indigenous company, holds a strategic stake in the venture, making the project a reflection of Nigeria’s push for local participation in upstream operations. The Nigerian Content Development and Monitoring Board (NCDMB) has also hailed the project as a benchmark for domestic capacity enhancement, given its inclusion of local engineering and fabrication firms in the execution plan.
According to Shell’s Managing Director for SNEPCo, Elohor Aiboni, the project represents “a vital step in delivering energy responsibly and supporting Nigeria’s transition to a gas-led economy.” She emphasised that the HI Field’s design is guided by stringent emission-reduction protocols, aligning with Shell’s target to achieve net-zero emissions by 2050.
Nigeria is home to more than 200 trillion cubic feet of proven gas reserves, the largest in Africa and among the top 10 globally. However, inadequate infrastructure, weak fiscal frameworks, and limited domestic gas utilisation have historically stifled growth. The Tinubu administration’s “Decade of Gas” policy aims to change that trajectory by positioning gas as the central pillar of Nigeria’s economic development and energy security strategy.
The Shell–Sunlink project complements this agenda, not only by enhancing gas supply for export but also by stimulating local industrial use. Feedstock from the project will supply the NLNG Train 7, which is currently over 60 percent complete and expected to raise Nigeria’s LNG production capacity by more than 35 percent upon completion. The expansion is projected to generate an additional $10 billion in annual revenue for Nigeria while creating over 12,000 direct and indirect jobs.
Moreover, by expanding its gas portfolio, Nigeria is contributing to the African Union’s Agenda 2063 goals, promoting sustainable energy access and industrialisation through cleaner fuels. The African Development Bank (AfDB) has also reaffirmed that Africa’s gas investments will be crucial in bridging the continent’s $100 billion annual energy infrastructure gap.
Globally, the HI Field development reflects how Africa’s hydrocarbon economies are adapting to evolving energy transition frameworks. The United Nations’ Sustainable Development Goal 7 (SDG 7), ensuring access to affordable, reliable, sustainable, and modern energy remains central to Nigeria’s gas expansion plan. The project also aligns with the Paris Agreement commitments, as natural gas offers a lower-carbon alternative to coal and oil in power generation and industrial use.
From a corporate standpoint, Shell’s investment mirrors its alignment with the Net Zero Emissions (NZE) scenario set out by the IEA, which envisions a balanced approach between fossil fuel efficiency and renewable energy growth. By prioritising gas developments like OML 144, Shell continues to anchor its energy transition strategy in regions where economic development and cleaner energy needs intersect.
What It Means for Nigeria and Africa
For Nigeria, the approval of this $2 billion project represents more than an economic transaction; it is a signal of regained global trust. Following years of underinvestment in the oil and gas sector, where FIDs dropped below $1 billion annually between 2016 and 2021, the recent wave of multi-billion-dollar commitments underscores Nigeria’s restored credibility among global investors.
The African Energy Chamber (AEC) notes that sub-Saharan Africa’s LNG output is expected to grow by 30 percent by 2030, with Nigeria, Senegal, and Mozambique leading the charge. Shell’s investment therefore reinforces Africa’s position as a critical player in the world’s energy future, bridging the gap between economic growth and sustainable supply.
As the world navigates an uncertain energy transition, Nigeria’s renewed focus on gas development represents a pragmatic, forward-looking strategy. The Shell–Sunlink HI Field project is not just an energy investment; it is a statement of national resurgence, a tangible sign that Nigeria is reclaiming its leadership in the global energy landscape.
If executed with the same determination that brought it to life, this project could mark the beginning of a new era, one where Nigeria’s vast gas wealth finally powers its industries, its homes, and its promise to a sustainable future.
