The federal government has announced Shell is investing about $2 billion on a new gas project in the shallow offshore HI Field, in OML 144.

The amount the government said is the second major gas investment in two years.

In a statement, Bayo Onanuga Special Adviser to the President, revealed that President Bola Ahmed Tinubu is happy with the developmnt.

According to the statement, the new Non-Associated Gas (NAG) development will produce about 350 million standard cubic feet of gas per day (mmscf/d) from 2028, nearly one-third of the gas requirements for the Nigeria LNG Limited’s Train 7 project. The statement stressed that the investments underscore the success of his reform agenda and the renewed confidence of global investors.

Part of the statement reads: "This investment decision is Nigeria's third major oil and gas FID in the last 18 months, following the Ubeta Non-Associated Gas project and the Bonga North deepwater project. It marks yet another milestone in Nigeria's journey to unlock its abundant gas resources for domestic and export use. The Ubeta and HI gas projects can supply up to 15 percent of the NLNG's total feedgas requirements, covering Trains 1 to 7.

"Since 2024, President Tinubu has issued targeted directives as part of the industry reform coordinated by the Office of the Special Adviser to the President on Energy. These directives have introduced unprecedented fiscal incentives, regulatory clarity, operating process simplification, cutting contracting costs, and reducing approval cycle times.

"These reforms, now embedded in legislation, have restored investor confidence and repositioned Nigeria as a competitive investment destination." It added that the announcement brings total significant upstream investment commitments through Final Investment Decisions (FIDs) in Nigeria's oil and gas sector to over US $8 billion since

President Tinubu assumed office in 2023. The statement also noted that the NLNG Train 7 project will expand Nigeria’s LNG production capacity by 8 million metric tonnes per year a 35% increase while creating jobs, stimulating economic growth, and boosting foreign exchange earnings.

Presidency continued: "The three landmark FIDs—the HI and Ubeta gas projects, and Bonga North deepwater—represent blueprint projects selected and unlocked by the Federal Government to drive the implementation of the presidential directives. Specifically, the development of the HI gas field—discovered four decades ago, in 1985—is being enabled by Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas in onshore and shallow offshore fields."

Special Adviser to the President on Energy, Olu Arowolo Verheijen, said the reforms are driving tangible results.

“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,” Verheijen said. “These projects will strengthen Nigeria’s LNG exports, expand domestic LPG supply, reduce imports, and advance clean cooking access for millions of households.

More FIDs are on the horizon, proving that with the right policies, investment and impact follow.” Shell’s Upstream President, Peter Costello, reaffirmed the company’s long-term commitment to Nigeria’s energy sector. "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.

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 HI gas field, discovered in 1985, is being developed under Presidential Directive 40, which introduced a competitive fiscal framework for Non-Associated Gas projects in onshore and shallow offshore fields.

President Tinubu described Shell’s investment as a major vote of confidence in Nigeria’s reform agenda. The Presidency said. “This major FID announcement by Shell, their second in one year, is a clear validation of our reform efforts and a signal to the world that Nigeria is fully open for business and investment."