Shell Nigeria Exploration and Production Company Limited (SNEPCo), a subsidiary of the UK-headquartered energy giant Shell, and Nigeria’s Sunlink Energies and Resources Limited have taken a final investment decision (FID) on a gas development in Nigerian waters.
As disclosed by Shell, the newly approved project at the HI field will comprise a wellhead platform with four wells, and a pipeline to transport the multiphase gas to onshore at Bonny Island.
Furthermore, a gas processing plant at Bonny is also planned, from where the processed gas will be transported to Nigeria LNG (NLNG) and the condensate to the Bonny Oil and Gas Export Terminal.
Once the HI project comes online, which is targeted by the decade’s end, it is anticipated to supply 350 million standard cubic feet, or around 60 thousand barrels of oil equivalent of gas per day at peak production to NLNG.
Shell holds a 25.6% in NLNG, which produces and exports liquefied natural gas (LNG) to global markets. According to the UK giant, NLNG accounts for approximately 7% of the world’s total LNG supply. The company’s partners in the project are NNPC (49%), TotalEnergies (15%), and Eni (10.4%).
“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 production at Bonny started in 1999, and six processing units (trains) with a total processing capacity of 22 million tonnes a year of LNG are currently in operation. The operator plans to expand the terminal’s capacity with the addition of Train 7 .
The increase in feedstock to NLNG via the Train 7 project is said to be in line with Shell’s plans to grow its global LNG volumes by an average of 4–5% per year by 2030.
Lying in 100 meters of water depth, around 50 kilometers from the shore, the HI field was discovered in 1985. The project’s estimated recoverable resource volumes are approximately 285 million barrels of oil equivalent (mmboe). Sunlink holds a 60% interest in the project and SNEPCo holds 40%.
In addition to this project, Shell holds an interest in Nigeria’s Bonga field. This deepwater development started producing in 2005, celebrating its one-billionth barrel of crude oil milestone in 2023.
Last December, Shell announced an FID on Bonga North , a subsea tie-back to the FPSO Bonga working at the field. The company also recently purchased TotalEnergies’ entire 12.5% stake in the OML 118 PSC, an oil mining lease holding the Bonga field.