Shell’s $2bn Gas Project Proof Nigeria Is Open For Business — Tinubu

President Bola Tinubu has welcomed the quality of Shell’s $2 cardinal Final Investment Decision (FID) connected a caller state task successful the shallow offshore HI Field successful OML 144.

The caller Non-Associated Gas (NAG) improvement task volition present astir 350 cardinal modular cubic feet of state per time (mmscf/d) from 2028, equivalent to astir a 3rd of the requirements of Nigeria LNG Limited’s Train 7 project.

According to a connection by statesmanlike spokesman, Bayo Onanuga, the announcement brings full important upstream concern commitments done Final Investment Decisions (FIDs) successful Nigeria’s lipid and state assemblage to implicit US $8 cardinal since President Tinubu assumed bureau successful 2023, underscoring the occurrence of his betterment docket and the renewed assurance of planetary investors.

The concern determination is Nigeria’s 3rd large lipid and state FID successful the past 18 months, pursuing the Ubeta Non-Associated Gas task and the Bonga North deepwater project. It marks yet different milestone successful Nigeria’s travel to unlock its abundant state resources for home and export use.

The Ubeta and HI state projects tin proviso up to 15 per cent of the NLNG’s full feedgas requirements, covering Trains 1 to 7.

Since 2024, President Tinubu has issued targeted directives arsenic portion of the manufacture betterment coordinated by the Office of the Special Adviser to the President connected Energy. These directives person introduced unprecedented fiscal incentives, regulatory clarity, operating process simplification, cutting contracting costs, and reducing support rhythm times.

These reforms, present embedded successful legislation, person restored capitalist assurance and repositioned Nigeria arsenic a competitory concern destination.

The 3 landmark FIDs—the HI and Ubeta state projects, and Bonga North deepwater—represent blueprint projects selected and unlocked by the Federal Government to thrust the implementation of the statesmanlike directives. Specifically, the improvement of the HI state field—discovered 4 decades ago, successful 1985—is being enabled by Presidential Directive 40, which introduced a competitory fiscal model for Non-Associated Gas successful onshore and shallow offshore fields.

Special Adviser to President Tinubu connected Energy, Olu Arowolo Verheijen, said: “With the Ubeta FID and present the HI FID, we person secured the state proviso needed to marque NLNG Train 7 not conscionable possible, but transformative. These projects volition importantly fortify the reliability of Nigeria’s LNG exports to planetary markets portion expanding LPG proviso for home usage — reducing imports, boosting overseas speech earnings, and advancing cleanable cooking entree for millions of Nigerian households.

“And this is lone the beginning; much FIDs are connected the horizon, proving that with the close policies successful place, concern and interaction follow.”

Peter Costello, Shell’s Upstream President, said, “Following caller concern decisions related to the Bonga deep-water development, today’s announcement demonstrates our continued committedness to Nigeria’s vigor sector, with a absorption connected Deepwater and Integrated Gas.

This Upstream task volition assistance Shell turn our starring Integrated Gas portfolio, portion supporting Nigeria’s plans to go a much important subordinate successful the planetary LNG market.”

The NLNG Train 7 task volition grow Nigeria’s LNG accumulation capableness by 8 cardinal metric tonnes annually, 35 percent of existent production. In summation to reinforcing Nigeria’s presumption successful the planetary state proviso worth chain, it volition grow home state supply, enactment occupation creation, catalyse economical growth, and stimulate SMEs successful big communities.

President Tinubu reiterated his administration’s committedness to creating an enabling situation for Nigeria’s home and overseas investors.

“This large FID announcement by Shell, their 2nd successful 1 year, is simply a wide validation of our wide-ranging betterment efforts and a awesome to the satellite that Nigeria is afloat unfastened for concern and investment,” President Tinubu added.