President Tinubu Hails Shell’s $2 billion Gas Project FID, Boosts Nigeria’s LNG Ambitions

President Tinubu Hails Shell’s $2 billion Gas Project FID, Boosts Nigeria’s LNG Ambitions

President Bola Ahmed Tinubu has applauded Shell’s $2 billion Final Investment Decision (FID) for developing the HI Field gas project in the shallow offshore OML 144, describing it as a strong endorsement of Nigeria’s energy sector reforms.

Once completed, the Non-Associated Gas (NAG) development project will supply around 350 million standard cubic feet of gas per day (mmscf/d) starting from 2028 — nearly one-third of the gas required for Nigeria LNG Limited’s Train 7 operations.

The announcement, disclosed on Tuesday in a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, brings total upstream investment commitments in Nigeria’s oil and gas industry to over $8 billion since President Tinubu assumed office in 2023.

Third Major FID Under Tinubu’s Administration

The HI Field marks Nigeria’s third major oil and gas FID within the past 18 months, following the Ubeta Gas and Bonga North Deepwater projects.

“This milestone reinforces Nigeria’s determination to unlock its vast gas potential for both domestic consumption and export,” the statement noted.

Together, the HI and Ubeta gas projects could supply up to 15% of NLNG’s total feedgas, spanning Trains 1 to 7.

Reforms Restoring Investor Confidence

Since 2024, the Tinubu administration has implemented targeted policy reforms—including fiscal incentives, streamlined regulations, reduced contracting costs, and shorter approval timelines—coordinated by the Office of the Special Adviser on Energy.

“These reforms, now embedded in law, have restored investor confidence and repositioned Nigeria as a competitive destination for global energy investments,” the statement added.

The Federal Government selected the HI, Ubeta, and Bonga North projects as blueprint initiatives to advance Tinubu’s energy sector transformation agenda.

HI Field: A 40-Year Resource Unlocked

Discovered in 1985, the HI Field’s development is being facilitated by Presidential Directive 40, which provides a competitive fiscal framework for Non-Associated Gas projects in onshore and shallow offshore fields.

Special Adviser on Energy, Olu Arowolo Verheijen, said the combined impact of the HI and Ubeta FIDs would secure gas supply for NLNG Train 7, enhancing both export capacity and domestic energy access.

“These projects will strengthen the reliability of Nigeria’s LNG exports, expand domestic LPG supply, reduce imports, and improve clean cooking access for millions of households,” Verheijen explained.

Shell Reaffirms Long-Term Commitment

Peter Costello, Shell’s Upstream President, said the new investment reflects the company’s confidence in Nigeria’s energy future.

“Following recent deepwater investments in Bonga, this decision underscores Shell’s ongoing commitment to Nigeria, with a focus on deepwater and integrated gas development,” Costello stated.

He added that the HI Field project will expand Shell’s Integrated Gas portfolio while helping Nigeria grow its presence in the global LNG market.

Boosting Nigeria’s LNG Capacity and Jobs

The NLNG Train 7 project aims to increase Nigeria’s LNG production capacity by 8 million metric tonnes per year, representing a 35% expansion of current output.

Beyond strengthening Nigeria’s position in the global gas value chain, the project is expected to create jobs, drive economic growth, and empower SMEs in host communities.

Tinubu: “Nigeria Is Open for Business”

President Tinubu reaffirmed his administration’s commitment to maintaining a stable and attractive investment climate for both local and international partners.

“This major FID by Shell—their second in one year—validates our wide-ranging reforms and sends a clear message that Nigeria is open for business,” Tinubu said.

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