Shell gives FID on HI offshore gas project in Nigeria

The international LNG sector has been boosted by the news that Shell, one of the largest energy companies in the world, has given its final investment decision, or FID for short, on the HI offshore gas project in the African nation of Nigeria. The nation has become universally renowned for its vast natural resources, and now, its gas sector and overall economy will be boosted by the investment by Shell to its energy sector. In a world embroiled in the apparent need to transition to the renewable energy sector, gas production remains a cornerstone of the conventional energy generation industry.

The HI offshore gas project in Nigeria is among the largest on the African continent

The HI offshore gas project was discovered in 1989 and lies in 100m of water depth, around 50km from the shore. Shell, which has operated in Nigeria in one form or another since 1936, has delivered its final investment decision to the Nigerian government.

Through its subsidiary, Shell Nigeria Exploration and Production Company Limited (SNEPCo), the company, along with its partners, Sunlink Energies and Resources Limited, has given its FID, which strengthens Nigeria’s standing in the international energy sector. LNG serves as the cornerstone of the sector and the last castle of rebels fighting off the tyranny of the renewable energy sector.

Once the project is completed, the HI offshore gas project will supply 350 million standard cubic feet (approximately 60 thousand barrels of oil equivalent) of gas per day at peak production to Nigeria LNG.

“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.” – Peter Costello, Shell’s Upstream President

The Nigerian government has lauded the final investment decision by Shell and its partners

LNG is essential to the global energy sector. For generations, it has served mankind as a viable form of energy generation, producing less greenhouse gas emissions than coal when used to generate electricity, and less emissions than petrol or diesel when used for transport fuel.

The project aligns perfectly with Shell’s plans to grow its global LNG volumes by an average of 4-5% per year until 2030. The HI offshore gas project consists of a wellhead platform with four wells, which will be installed at the location of the site. Additionally, it also features a pipeline to transport the multiphase gas to onshore at Bonny, which also has a gas processing plant.

As other African nations commit billions to expand upstream oil and gas by 2030, Nigeria’s economy and GDP will surely benefit from the HI offshore gas project.

“These projects will significantly strengthen the reliability of Nigeria’s LNG exports to global markets while expanding LPG supply for domestic use, reducing imports, boosting foreign exchange earnings, and advancing clean cooking access for millions of Nigerian households. And this is only the beginning; more FIDs are on the horizon, proving that with the right policies in place, investment and impact follow.” – Special Adviser to President Tinubu on Energy, Olu Verheijen

The liquefied natural gas sector is fighting for its life in a very volatile energy market

The world is currently consumed by the apparent need to transition away from fossil fuels towards the renewable energy projects springing up all over the world. Nuclear, wind, and solar have become as trendy as the latest iPhone while the conventional energy sector clings on for dear life. The coal sector has been experiencing an increase in output across the board. As a result, liquefied natural gas will need to put on its boxing gloves and prepare for a fight to remain an integral part of the global energy sector.