Nigeria has secured another major vote of confidence from the global energy industry, as Shell announced a $2 billion Final Investment Decision (FID) for a new offshore gas project in the HI Field, OML 144.
The development, which will deliver 350 million standard cubic feet of gas per day (mmscf/d) from 2028, brings total upstream commitments in Nigeria’s oil and gas sector to over $8 billion since Tinubu assumed office in 2023. This is the strongest investment rebound the industry has seen in nearly a decade.
According to a statement issued on Monday by the State House, the HI Non-Associated Gas (NAG) project will supply nearly a third of the gas required for Nigeria LNG Limited’s Train 7 facility, reinforcing Nigeria’s position as a key player in the global gas export market.
“This major FID announcement by Shell, their second in one year, is a clear validation of our wide-ranging reform efforts and a signal to the world that Nigeria is fully open for business and investment,” President Tinubu said.
Part of a Broader Gas Revolution
The new project follows the Ubeta gas project and the Bonga North deepwater development, bringing to three the number of landmark upstream investment decisions made in just 18 months.
Since 2024, the administration, through the Office of the Special Adviser to the President on Energy, has introduced a suite of measures to make Nigeria more competitive. This includes new fiscal incentives, simplified approval processes, and clearer regulatory frameworks.
“These reforms, now embedded in legislation, have restored investor confidence and repositioned Nigeria as a competitive investment destination,” the presidency said.
Olu Arowolo Verheijen, special adviser to the president on energy, said the new FID will strengthen gas supply security for both export and domestic use.
“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,” Verheijen said.
“These projects will strengthen the reliability of LNG exports while expanding LPG supply for domestic use — reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households.”
Shell: “We’re Deepening Commitment to Nigeria”
Peter Costello, Shell’s Upstream President, said the company’s decision underscores its continued commitment to Nigeria’s energy future.
“Following recent investment decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued commitment to Nigeria’s energy sector,” Costello said. “This 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 HI gas field was discovered in 1985 but remained undeveloped for four decades until the introduction of Presidential Directive 40, which established a competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields.
Building a Stronger Energy Future
Analysts say the renewed upstream activity could have ripple effects across Nigeria’s energy landscape, improving LNG exports, boosting government revenue, and stimulating job creation.
The NLNG Train 7 project, for instance, is expected to expand Nigeria’s LNG output by 8 million metric tonnes annually, representing a 35 percent increase in current production capacity.
Industry experts see the convergence of the HI, Ubeta, and Bonga North projects as a pivotal moment for Tinubu’s administration, which has made energy reform a core pillar of its economic agenda.
