Shell Greenlights $2B HI Offshore Gas Development with Sunlink Energies, Strengthening Nigeria’s LNG Export Capacity
British energy giant Shell (SHEL.L) has approved a $2 billion investment in the HI offshore gas development project in Nigeria, in partnership with Sunlink Energies, according to Reuters.
The HI project is expected to produce 350 million standard cubic feet of gas per day for Nigeria LNG (NLNG), reinforcing the nation’s standing as a major global exporter of liquefied natural gas (LNG).
This development also marks one of Shell’s most significant offshore investments in Nigeria in recent years.
The project follows a major transaction in which TotalEnergies sold its 12.5% stake in Oil Mining Lease (OML) 118, home to the Bonga offshore oilfield, to Shell and Eni’s Agip for $510 million.
The acquisition enhances Shell’s offshore portfolio and positions it as a key player in Africa’s evolving LNG export market.
Discovered in 1985, the HI field lies about 50 kilometers (31 miles) off Nigeria’s coast in the Niger Delta Basin, at a water depth of roughly 100 meters. Production is scheduled to commence before the end of the decade.
According to Olu Verheijen, Special Adviser on Energy to the Nigerian President, the HI project will supply nearly one-third of the gas needed for NLNG’s Train 7 expansion, a crucial addition that will increase the country’s LNG export capacity.
The Nigerian National Petroleum Corporation (NNPC) remains the majority stakeholder in Nigeria LNG with 49% ownership, followed by Shell with 25.6%, while TotalEnergies and Eni hold the remaining shares — reflecting the collaborative nature of the country’s LNG ventures.
Strategic Shift Toward Offshore and LNG Investments
The HI project aligns with Shell’s global strategy to increase LNG output by 4–5% annually through 2030, responding to rising global demand for cleaner energy alternatives.
In March 2025, Shell divested its onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), selling it to a consortium led by Renaissance, a Nigerian energy firm, for $2.4 billion — effectively ending nearly a century of onshore operations in the country.
Similarly, Eni sold its Nigerian Agip Oil Company Ltd (NAOC) to Oando PLC in August 2024 for about $783 million, while retaining its offshore and LNG interests.
These moves underscore a broader strategic shift among international oil majors toward offshore exploration and integrated gas projects in Nigeria — areas viewed as more stable and economically viable compared to onshore operations.
Nigeria’s Expanding Role in Global LNG Supply
As Nigeria continues to position itself as a leading LNG supplier, the HI project demonstrates sustained foreign investment confidence in the country’s energy sector.
The development not only bolsters Nigeria’s role in global energy security but also supports its goal of expanding offshore gas production to meet rising domestic and international demand.
