Shell Nigeria Exploration and Production Company Limited (SNEPCo), in partnership with Sunlink Energies and Resources Limited, has taken a final investment decision on the HI gas project offshore Nigeria, marking a significant boost to the country’s liquefied natural gas ambitions.
The project, expected to commence production before the end of this decade, will deliver 350 million standard cubic feet of gas per day at peak production, equivalent to approximately 60,000 barrels of oil. The gas will supply Nigeria LNG, in which Shell holds a 25.6% interest, supporting the nation’s plans to become a major force in the global LNG market.
“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 HI field, discovered in 1985, sits in 100 meters of water depth approximately 50 kilometers from shore. Current estimated recoverable resource volumes stand at approximately 285 million barrels of oil equivalent. The development consists of a wellhead platform with four wells, a pipeline to transport multiphase gas to onshore facilities at Bonny, and a gas processing plant from where processed gas will be transported to NLNG.
The project is structured as a joint venture between Sunlink Energies and Resources Limited, holding 60%, and SNEPCo with 40%. The increased feedstock to NLNG via the Train 7 project aligns with Shell’s plans to grow global LNG volumes by 4-5% annually until 2030, while bolstering NLNG’s contribution to Nigeria’s economic development goals, including construction and operational jobs.
Source: energy-pedia.com