Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Sunlink Energies & Resources Limited have taken a final investment decision (FID) on the HI Gas Project, marking a major step forward in Nigeria’s offshore gas development.
The offshore gas project, located about 50 kilometers off the Nigerian coast in approximately 100 meters of water, is expected to deliver around 350 million standard cubic feet per day (mmscfd) of gas to Nigeria LNG (NLNG) once operational. This will also help strengthen feedstock supply for NLNG’s Train 7 expansion.
Project Factsheet for Shell-Sunlink HI Offshore Gas (LNG) Development in Nigeria
Project name: HI Gas Development Project
Location: Offshore Nigeria, 50 km from the coast, 100 m water depth
Discovery: 1985
Developers: Shell Nigeria Exploration and Production Company (SNEPCo) and Sunlink Energies & Resources Limited
Equity structure: Sunlink with 60%, Shell with 40%
Oil BOE: 285 million barrels of oil equivalent
Peak gas production: 350 million standard cubic feet per day (mmscfd)
Primary offtaker: Nigeria LNG (NLNG). Also supports Train 7 expansion
Infrastructure:
- Offshore wellhead platform with four production wells
- Pipeline to onshore processing facilities at Bonny Island
- Condensate export via Bonny Oil & Gas Export Terminal
Estimated investment: Around USD 2 billion
Operator: Shell through SNEPCo
Project Timeline
2021-2023: Studies and planning for commercial development accelerate under Nigeria’s gas expansion policy.
2024: Engineering and FEED (Front-End Engineering Design) completed. FID preparations also advance.
October 2025: FID announced by Shell and Sunlink Energies.
2026 onwards: Construction and installation phase expected, including platform, pipeline, and subsea systems.
The Shell-Sunlink JV on HI Offshore Gas (LNG) Field in Nigeria
Discovered in 1985, the HI field holds an estimated 285 million barrels of oil equivalent (mmboe) of hydrocarbon resources. Under the joint venture structure, Sunlink Energies holds a 60 per cent interest, while SNEPCo, a subsidiary of Shell plc, holds 40 per cent.
Development plans include installing a wellhead platform with four production wells and constructing new pipeline infrastructure to transport gas and condensate to onshore facilities at Bonny Island. Processed gas will feed into NLNG’s export trains, while condensate will be directed to the Bonny Oil & Gas Export Terminal.
Shell also said the FID reinforces its integrated gas growth strategy, which targets expanding LNG volumes globally by 4-5 per cent annually through 2030. For Nigeria, the investment is part of ongoing national efforts to increase gas output and reduce flaring. These are set to advance goals set out under the Decade of Gas initiative.
Sunlink Energies CEO, Olayinka Adebayo, also described the project as a “transformational milestone” that will “deepen Nigeria’s domestic capacity in energy infrastructure while unlocking long-term economic value.”
Impact on Oil and Gas Markets, and the Region
The HI Gas Project comes amid renewed momentum in Nigeria’s upstream sector. This follows other recent FIDs such as Bonga North in Bonga oil and gas field, also by Shell, and Ubeta by TotalEnergies. The oil and gas partnership also aligns with the Nigeria’s government policy priorities under the Decade of Gas and its push to make the country a top five LNG exporter globally.
The project’s implementation could also attract up to $10 billion in cumulative investments. This is across its value chain that spans from gas processing, export infrastructure, to job creation. For Shell, the energy major with some of the largest oil rigs in the world, it also strengthens its long-term LNG strategy in West Africa, where natural gas is increasingly seen as a key export driver.
