Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of Shell plc, together with Sunlink Energies and Resources Limited, has approved a $2 billion investment in the HI gas project offshore Nigeria, aiming to increase the country’s liquefied natural gas (LNG) output.

The development, located roughly 50 kilometres off the Nigerian coast in 100 metres of water, is expected to supply up to 350 million standard cubic feet of gas per day at peak production—equivalent to around 60 thousand barrels of oil per day—to Nigeria Liquefied Natural Gas (NLNG), where Shell holds a 25.6% stake. Production is projected to start before the end of this decade.

Peter Costello, Shell’s Upstream President, said the project demonstrates the company’s ongoing commitment to Nigeria’s energy sector. “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,” he said.

The HI field, discovered in 1985, contains an estimated 285 million barrels of oil equivalent in recoverable resources. The development includes a wellhead platform with four wells, a pipeline transporting multiphase gas to Bonny onshore, and a processing plant feeding gas to NLNG, with condensate sent to the Bonny Oil and Gas Export Terminal.

The project aligns with Shell’s broader strategy to expand global LNG volumes by 4-5 percent per year until 2030 and complements the planned Train 7 expansion at NLNG’s Bonny Island terminal. It is expected to generate jobs in construction and operations and contribute to Nigeria’s national economic development goals.

HI is being developed as a joint venture, with Sunlink Energies holding 60% and SNEPCo 40%. Peak production and resource estimates are presented on a gross 100% basis, with current recoverable volumes considered a P50 estimate, indicating a 50 percent probability that actual resources could be higher or lower.