Nigeria’s energy sector is witnessing a major rebound, with more than $8 billion in new oil and gas investments secured within the last 18 months under the administration of President Bola Ahmed Tinubu. The latest is a $2 billion Final Investment Decision (FID) by Shell for the development of a new offshore Non-Associated Gas (NAG) project in the HI Field, OML 144.
The HI gas project, expected to deliver 350 million standard cubic feet of gas per day (mmscf/d) from 2028, will supply almost one-third of the gas needed for Nigeria LNG Limited’s Train 7 project, marking a significant milestone in Nigeria’s drive to unlock its abundant gas resources for both domestic and export use.
President Tinubu welcomed Shell’s decision, describing it as a strong validation of Nigeria’s ongoing economic and energy reforms, which have restored investor confidence and positioned the country as a competitive global investment destination.
“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,” the President stated.
The new FID adds to two earlier major approvals — the Ubeta Non-Associated Gas project and the Bonga North deepwater development — making the HI field Shell’s third significant investment in Nigeria’s oil and gas sector within 18 months. Together, the HI and Ubeta projects can supply up to 15 percent of NLNG’s total feedgas requirements, covering Trains 1 to 7.
According to Olu Arowolo Verheijen, Special Adviser to the President on Energy, the project exemplifies the success of targeted reforms coordinated by the Presidency since 2024.
These reforms introduced unprecedented fiscal incentives, regulatory clarity, and faster approval cycles, reducing operational costs and accelerating project execution.
“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 significantly strengthen Nigeria’s LNG exports, expand LPG supply for local use, reduce imports, and advance clean cooking access for millions of Nigerian households.”
Peter Costello, Shell’s Upstream President, reaffirmed the company’s long-term commitment to Nigeria’s energy transition, saying the investment aligns with Shell’s focus on deepwater and integrated gas operations.
“Today’s announcement demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas. This project will help Shell grow its leading gas portfolio while supporting Nigeria’s plan to become a more significant global LNG player,” Costello said.
The NLNG Train 7 expansion, which adds 8 million metric tonnes per annum to Nigeria’s production capacity — a 35 percent increase — is expected to boost foreign exchange earnings, create jobs, and stimulate SME growth in host communities.
President Tinubu reiterated his administration’s resolve to maintain a stable and transparent investment climate for both local and international investors. “Nigeria is open for business, and we will continue to provide the right environment for investors to thrive,” he said.
