Shell $2 Billion Gas Project in Nigeria —
Over $8 Billion in Upstream Oil and Gas Investments Under President Tinubu Signal Renewed Global Investor Confidence
President Bola Ahmed Tinubu has welcomed the news of Shell’s $2 billion Final Investment Decision (FID) on a new offshore gas development in the HI Field, OML 144, marking another milestone achievement in Nigeria’s energy sector reform agenda.
The new Non-Associated Gas (NAG) development project will deliver approximately 350 million standard cubic feet of gas per day (mmscf/d) starting from 2028, equivalent to almost one-third of the requirements of Nigeria LNG Limited’s Train 7 project.
This development brings the total of significant upstream investment commitments through FIDs in Nigeria’s oil and gas sector to over $8 billion since President Tinubu assumed office in 2023 – further underscoring renewed investor confidence in the Nigerian economy.
Second Major FID in 18 Months
The Shell $2 Billion Gas Project in Nigeria represents the country’s third major oil and gas FID in the past 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project. Together, these landmark decisions are part of the government’s strategic roadmap to unlock Nigeria’s abundant gas reserves for both domestic utilization and export.
Combined, the Ubeta and HI gas projects will supply up to 15 percent of the NLNG’s total feedgas requirements, supporting Trains 1 to 7 and enhancing energy security.
Tinubu’s Reforms Driving Renewed Confidence
Since 2024, President Tinubu has issued targeted industry directives through the Office of the Special Adviser to the President on Energy, introducing unprecedented fiscal incentives, regulatory clarity, and operational simplification. These measures have cut contracting costs, reduced approval timelines, and provided long-awaited predictability for investors.
The reforms – now embedded in legislation – have repositioned Nigeria as a competitive global investment destination, particularly in the gas and deepwater segments.
Blueprint Projects Driving Implementation
The HI, Ubeta, and Bonga North FIDs are blueprint projects strategically selected by the Federal Government to implement Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas development in onshore and shallow offshore fields. https://www.nigeria.gov.ng
Notably, the HI Field, discovered in 1985, will now finally be developed after four decades – signifying the government’s determination to monetize dormant hydrocarbon assets through transparent and investor-friendly policies.
Special Adviser Verheijen: A Turning Point for Nigeria’s Gas Ambition
Special Adviser to the President on Energy, Olu Arowolo Verheijen, hailed Shell’s FID as a transformative moment for Nigeria’s gas industry:
“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 strengthen the reliability of Nigeria’s LNG exports while expanding domestic LPG supply – reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of households.
And this is only the beginning; more FIDs are on the horizon, proving that with the right policies, investment and impact follow.”
Shell Reaffirms Commitment to Nigeria’s Energy Growth
Peter Costello, Shell’s Upstream President, confirmed the company’s long-term commitment:
“Following our recent investment decisions related to Bonga North deep-water, today’s announcement demonstrates Shell’s continued commitment to Nigeria’s energy sector. This new project aligns with our focus on Deepwater and Integrated Gas and supports Nigeria’s ambition to become a significant global LNG player.”
Train 7: Expanding Nigeria’s Global LNG Footprint
The NLNG Train 7 project will expand Nigeria’s LNG production capacity by 8 million metric tonnes per annum (mtpa)—a 35 percent increase over current output.
This expansion will reinforce Nigeria’s role in the global gas supply chain, stimulate job creation, and strengthen small and medium enterprises (SMEs) in host communities. It will also broaden domestic gas supply, promote clean energy transition, and catalyze inclusive economic growth.
President Tinubu: Nigeria Fully Open for Business
President Tinubu reaffirmed his administration’s commitment to a stable and investor-friendly business environment:
“This major FID announcement by Shell – their second in one year – is a clear validation of our reform efforts and a signal to the world that Nigeria is fully open for business and investment. Our goal is to make Nigeria the preferred energy investment destination in Africa.”
Through consistent reforms and transparent engagement with the private sector, the Tinubu administration continues to attract large-scale investments, ensuring that Nigeria’s natural gas serves as a catalyst for economic growth, job creation, and cleaner energy access.
Renewed Confidence, Renewed Growth
With more than $8 billion in cumulative upstream investments since 2023, Nigeria’s energy reforms under President Tinubu are yielding tangible results – transforming long-delayed projects into engines of growth and positioning the nation at the center of Africa’s gas revolution. http://gmtnewsng.com
