UK-based oil major Shell has announced a final investment decision (FID) for the HI gas project, which will be located offshore of Nigeria.
The HI field is located about 30 miles from the Nigerian shore in waters about 100 metres deep, and was discovered way back in 1985. Its recoverable gas resources are believed to total about 285 million barrels of oil equivalent (boe) in volume. At peak production, the project is expected to produce about 60 thousand boe of natural gas per day. This will be processed at Nigeria LNG for liquification and exported to global markets as liquified natural gas (LNG).
Natural gas is a relatively clean-burning fuel that is regarded as an important transition fuel in the decarbonisation process. Shell has also pioneered gas-to-liquid technology to transform it into cleaner burning fuels like diesel and ultra-pure base oils for lubricant products.
The president for upstream at Shell, Peter Costello, said in a press release that after other determinations:
“…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. 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 project is expected to begin production before 2030. The increase in supply and capacity at Nigeria LNG fits in with Shell’s aim of achieving a 4-5% average yearly increase in its LNG volumes over the same period.
