Presidency Announces Nigeria’s Second Major Gas Investment in 2 Years
- Shell has announced plans to invest $2 billion in Nigeria’s HI offshore gas project, which will expand Nigeria’s LNG production
- The project is the second biggest investment commitment in 2 years, and will produce 350 million standard cubic feet of gas per day by 2028
- The government is excited, stressing that the investment reflects renewed investor confidence
CHECK OUT: How to Start Earning with Copywriting in Just 7 Days – Even if You’re a Complete Beginner
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The federal government has announced Shell is investing about $2 billion in a new gas project in the shallow offshore HI Field, in OML 144 located in the Niger Delta.
The government said it is the second major gas investment in two years.
Source: Getty Images
In a statement, Bayo Onanuga, special adviser to the president, revealed that President Bola Ahmed Tinubu welcomed the development.
According to the statement, the new Non-Associated Gas (NAG) development will produce about 350 million standard cubic feet of gas per day (mmscf/d) from 2028, nearly one-third of the gas requirements for the Nigeria LNG Limited’s Train 7 project.
The statement stressed that the investments underscore the success of President Tinubu’s reform agenda and the renewed confidence of global investors.
Part of the statement reads:
"This investment decision is Nigeria's third major oil and gas FID in the last 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project. It marks yet another milestone in Nigeria's journey to unlock its abundant gas resources for domestic and export use. The Ubeta and HI gas projects can supply up to 15 percent of the NLNG's total feedgas requirements, covering Trains 1 to 7.
"Since 2024, President Tinubu has issued targeted directives as part of the industry reform coordinated by the Office of the Special Adviser to the President on Energy. These directives have introduced unprecedented fiscal incentives, regulatory clarity, operating process simplification, cutting contracting costs, and reducing approval cycle times.
"These reforms, now embedded in legislation, have restored investor confidence and repositioned Nigeria as a competitive investment destination."
Benefits of the investments
According to the presidency, Shell project brings the total significant upstream investment commitments through Final Investment Decisions (FIDs) in Nigeria's oil and gas sector to over US $8 billion since President Tinubu assumed office in 2023.
The statement also noted that the NLNG Train 7 project will expand Nigeria’s LNG production capacity by 8 million metric tonnes per year a 35% increase, while creating jobs, stimulating economic growth, and boosting foreign exchange earnings.
Source: UGC
Special Adviser to the President on Energy, Olu Arowolo Verheijen, said:
“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 Nigeria’s LNG exports, expand domestic LPG supply, reduce imports, and advance clean cooking access for millions of households.
"More FIDs are on the horizon, proving that with the right policies, investment and impact follow.”
Shell’s Upstream President, Peter Costello, reaffirmed the company’s long-term commitment to Nigeria’s energy sector.
"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. 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 HI gas field, discovered in 1985, is being developed under Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas projects in onshore and shallow offshore fields.
President Tinubu described Shell’s investment as a major vote of confidence in Nigeria’s reform agenda.
The Presidency said.
“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."
Cooking gas prices in Nigeria
Earlier, Legit.ng reported that Owners of Liquefied Petroleum Gas (LPG) plants, also known as cooking gas plants, have begun adjusting their prices as supply improves in the market.
The development comes after days of scarcity, which led to a surge in prices, especially in Lagos and Ogun states.
Some gas plants are now selling at N1,500 to N1,600 per kg, compared to the N1,800 to N2,300 range last week.
Don't miss out! Join Legit.ng's Sports News channel on WhatsApp now!
Source: Legit.ng
