Shell Nigeria Exploration and Production Co. Ltd (SNEPCo), a subsidiary of Shell plc, together with Sunlink Energies and Resources Ltd, have taken a final investment decision (FID) on the HI gas project offshore Nigeria.
When completed, the project will supply 350 million ft3 (approximately 60 000 boe) of gas per day at peak production to Nigeria LNG (NLNG; Shell interest 25.6%), which produces and exports LNG to global markets. Production is expected to begin before the end of this decade.
“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,” said Peter Costello, Shell’s Upstream President. “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 increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, is in line with Shell’s plans to grow its global LNG volumes by an average of 4-5%/y until 2030. It will also bolster NLNG’s contribution to Nigeria's national economic development goals, including jobs in construction and operations.
The HI field was discovered in 1985 and lies in 100 m of water depth around 50 km from the shore. The current estimated recoverable resource volumes of the HI project are approximately 285 million boe.