Nigeria has secured another major foreign investment boost as global energy giant Shell announced a $2 billion Final Investment Decision (FID) on the development of the HI Non-Associated Gas (NAG) field located in the shallow offshore OML 144 block.
The project, expected to deliver around 350 million standard cubic feet of gas per day (mmscf/d) from 2028, will supply nearly one-third of the gas required for Nigeria LNG Limited’s Train 7 project—a major expansion of the country’s liquefied natural gas capacity.
This milestone marks Nigeria’s third major oil and gas FID in just 18 months, following the Ubeta NAG and Bonga North deepwater developments. Combined, these projects represent over $8 billion in new upstream commitments since President Bola Tinubu took office in 2023, underscoring a renewed wave of global investor confidence in Nigeria’s energy sector.
The Tinubu administration attributes the investment momentum to targeted energy-sector reforms introduced since 2024 through the Office of the Special Adviser to the President on Energy. These reforms include new fiscal incentives, regulatory clarity, streamlined contracting procedures, and shorter project approval timelines—measures designed to lower costs and improve Nigeria’s competitiveness for global capital.
According to the Presidency, these reforms, now codified into law, are transforming Nigeria into one of Africa’s most attractive destinations for energy investment.
President Tinubu hailed Shell’s investment decision as another vote of confidence in Nigeria’s reform agenda and a clear signal to global investors:
“This major FID announcement by Shell, their second in one year, is a validation of our wide-ranging reform efforts and a strong signal that Nigeria is fully open for business and investment.”
The new Shell HI field project is particularly symbolic, as it revives a gas field discovered 40 years ago in 1985. It was made viable under Presidential Directive 40, which introduced a modern, competitive fiscal framework for Non-Associated Gas developments in onshore and shallow offshore assets.
The three landmark projects—HI, Ubeta, and Bonga North—are among the blueprint ventures the Federal Government prioritised to demonstrate the impact of its new policies. Together, the HI and Ubeta gas projects are expected to supply up to 15 percent of NLNG’s total feedgas for Trains 1 through 7, supporting both domestic and export-oriented gas growth.
Special Adviser to the President on Energy, Olu Arowolo Verheijen, described the new Shell FID as a transformative milestone for Nigeria’s gas industry:
“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. 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 forex earnings, and advancing clean cooking access for millions of Nigerians. And this is only the beginning; more FIDs are on the horizon”, she said.
Peter Costello, Shell’s Upstream President, also reaffirmed the company’s strategic focus on Nigeria:
“Following our recent Bonga deepwater investment, today’s decision demonstrates our continued commitment to Nigeria’s energy sector, with a focus on Deepwater and Integrated Gas. This project will help expand Shell’s Integrated Gas portfolio while supporting Nigeria’s ambition to become a major global LNG player.”
When completed, NLNG Train 7 will add 8 million metric tonnes per annum (mtpa) to Nigeria’s existing LNG production capacity, a 35 percent increase. The expansion is expected to boost government revenues, create thousands of jobs, stimulate small and medium enterprises in host communities, and enhance domestic gas availability.
President Tinubu hailed Shell’s investment decision as another vote of confidence in Nigeria’s reform agenda and a clear signal to global investors:
“This major FID announcement by Shell, their second in one year, is a validation of our wide-ranging reform efforts and a strong signal that Nigeria is fully open for business and investment.”
