The Nigerian economy received a significant boost on Tuesday with the announcement of a $2 billion Final Investment Decision (FID) by Shell Nigeria Exploration and Production Company Limited (SNEPCo) and its partner, Sunlink Energies and Resources Limited, for the new HI Gas Project. This offshore development, located in Oil Mining Lease (OML) 144, is a strategic step toward securing Nigeria’s position as a major global exporter of Liquefied Natural Gas (LNG).
The announcement, made on October 14, 2025, by the Presidency, confirmed that the Non-Associated Gas (NAG) project is designed to deliver approximately 350 million standard cubic feet of gas per day (mmscf/d) at peak production, with first gas expected before the end of the decade, likely around 2028/2029. This output is crucial, as it represents nearly one-third of the required feedgas for the massive Nigeria LNG Train 7 expansion on Bonny Island.
President Bola Ahmed Tinubu hailed the decision, describing the investment as a clear validation of his administration’s energy sector reforms. This FID marks the third major oil and gas investment in Nigeria in the last 18 months, following the Ubeta NAG project and the Bonga North deepwater development. Cumulatively, these Final Investment Decisions have brought the total new upstream investment commitments to over $8 billion since mid-2023.
The success of the HI Gas Project, whose field was originally discovered in 1985 but left undeveloped, is largely attributed to the government’s targeted policy interventions, specifically Presidential Directive 40. This directive introduced a competitive fiscal framework to incentivize the development of non-associated gas in shallow offshore and onshore areas, resolving long-standing commercial hurdles.
Olu Arowolo Verheijen, Special Adviser to the President on Energy, emphasized the dual economic benefits. “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,” she stated. Beyond strengthening the reliability of Nigeria’s LNG exports, the projects will significantly expand the domestic supply of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
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This move is expected to drastically reduce the country’s reliance on imported LPG, boost foreign exchange earnings, and advance clean cooking access for millions of households.
Shell’s Upstream President, Peter Costello, reaffirmed the company’s strategic commitment to Nigeria’s energy sector, particularly focusing on Deepwater and Integrated Gas assets. The $2 billion investment is consistent with Shell’s global strategy to expand its LNG portfolio and reinforces the nation’s ambition to be a more formidable player in the global gas market.
Analysts suggest this successful FID signals a major return of investor confidence, positioning Nigeria as a competitive and policy-driven destination for significant energy capital.
