Shell, Sunlink approve offshore gas project to boost Nigeria LNG supply

Shell’s Bonga floating, production, storage and offloading (FPSO) facility lies in deep water, Gulf of Guinea, Nigeria. Shell Nigeria Exploration and Production Co. (SNEPCo), a subsidiary of Shell plc, and Sunlink Energies and Resources Ltd. have reached a final investment decision on the HI gas project offshore Nigeria.

Shell Nigeria Exploration and Production Co. (SNEPCo), a subsidiary of Shell plc, and Sunlink Energies and Resources Ltd. have reached a final investment decision on the HI gas project offshore Nigeria, advancing a key supply source for the Nigeria LNG (NLNG) plant on Bonny Island.

At peak output, the project is expected to deliver about 350 million standard cubic feet (MMscf) of gas per day—equivalent to roughly 60,000 barrels of oil equivalent—to NLNG, in which Shell holds a 25.6% interest. First production is targeted before the end of the decade.

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

The new gas supply will feed into NLNG’s Train 7 expansion, now under development to increase the terminal’s output capacity. The project aligns with Shell’s global strategy to grow its LNG production by 4–5% annually through 2030, while contributing to Nigeria’s broader economic and industrial goals, including job creation in construction and operations.

Discovered in 1985, the HI field lies in 100 meters of water about 50 kilometers offshore. Estimated recoverable resources total roughly 285 million barrels of oil equivalent (mmboe). The development plan includes a wellhead platform with four wells, a subsea pipeline linking to onshore Bonny, and a new gas processing plant. Processed gas will supply NLNG, while condensate will be exported through the Bonny Oil and Gas Export Terminal.

Sunlink holds a 60% operating interest in the HI project, with SNEPCo owning 40%. Production will be reported under Shell’s Upstream segment.

The project contributes to Shell’s broader goal, announced at its 2025 Capital Market Day, to bring onstream between 2025 and 2030 a portfolio of upstream and integrated gas projects totaling more than 1 million barrels of oil equivalent per day in peak output. Shell also plans to grow combined upstream and integrated gas production by about 1% annually through the end of the decade.

Liquefied natural gas remains central to Shell’s energy transition strategy, as it produces significantly fewer greenhouse gas emissions than coal for power generation and less than petroleum-based fuels for transportation.

The FID follows Shell’s December 2024 investment decision on the Bonga North project and an increased equity stake in the Bonga field—moves that underscore the company’s continued investment discipline and long-term commitment to Nigeria’s deep-water and integrated gas sectors.