The Presidency on Tuesday announced that Shell has taken a Final Investment Decision (FID) to commit $2 billion to a new offshore gas project in the country, the second major investment by the company in less than a year.

The investment covers the development of the HI gas field in Oil Mining Lease (OML) 144, located in Nigeria’s shallow offshore region.
The project is expected to begin delivering 350 million standard cubic feet of gas per day (mmscf/d) by 2028.

The announcement was made in a statement on Tuesday by Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy.

“President Bola Ahmed Tinubu welcomes the news of Shell’s $2 billion Final Investment Decision (FID) on a new gas project in the shallow offshore HI Field, in OML 144,” Onanuga announced.

Onanuga stated that this gas output would contribute substantially to the feedstock requirements of the Nigeria LNG (NLNG) Train 7 project, which aims to boost the country’s liquefied natural gas capacity.

This latest FID brings the total value of major upstream oil and gas investments finalised in Nigeria since President Bola Tinubu assumed office in May 2023 to over $8 billion, according to Onanuga.

The Shell investment follows earlier FIDs for the Ubeta gas project and the Bonga North deepwater development, both of which were also confirmed within the past 18 months.

Shell’s Upstream President, Peter Costello, said the investment reflects the company’s strategic focus on integrated gas and its long-term presence in Nigeria.

“Following recent investment decisions related to the Bonga deepwater development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas,” Costello said.

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

Olu Verheijen, Special Adviser to the President on Energy, said the project will contribute to gas supply for both domestic and export purposes, including supporting cleaner energy use within Nigerian households through expanded LPG availability.

Verheijen said, “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 Nigerian households. And this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow.”