Shell approves new offshore gas project in Nigeria

Oil major Shell said Tuesday its Nigerian subsidiary, Shell Nigeria Exploration and Production Company Ltd., has approved a new offshore gas project with local partner Sunlink Energies and Resources Ltd.

The companies have taken a final investment decision on the HI gas project, located about 50 kilometers off the Nigerian coast in 100 meters of water, the oil major said in a statement.

When completed, the field is expected to produce up to 350 million standard cubic feet of gas per day, roughly 60,000 barrels of oil equivalent, for Nigeria LNG, in which Shell holds a 25.6% stake.

Production is expected to begin before the end of the decade, with the gas intended to supply Nigeria LNG’s Train 7 expansion at Bonny Island.

The expansion is part of Shell’s plan to grow its global liquefied natural gas volumes by 4% to 5% a year through 2030, according to the statement.

Shell Upstream President Peter Costello said the project will help expand the company’s integrated gas portfolio while supporting Nigeria’s goal of becoming a bigger player in the global LNG market.

• Nigeria
• Oil major Shell
• Peter Costello