Shell Nigeria Exploration and Production Company Limited (SNEPCo), on Tuesday announced additional investment to grow Nigeria’s gas export by 350 Million Standard Cubic Feet per Day (MMSCF/D).
SNEPCo, a subsidiary of Shell UK PLC announced the Final Investment Decision (FID) in a statement by Shell Group.
According to the statement, SNEPCo and Sunlink Energies and Resources Limited, have taken the FID on the HI gas project offshore Nigeria.
SNEPCo noted that when completed, the project will supply 350 million standard cubic feet of gas daily, approximately 60,000 barrels of oil equivalent of gas per day at peak.
The gas production will be fed to Nigeria Liquified Natural Gas (NLNG) Train 7.
Shell holds a 25.6 per cent interest in NLNG, which produces and exports Liquified Natural Gas (LNG) to global markets
According to SNEPCo, production is expected to begin before 2030.
“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,” SNEPCo quoted Peter Costello, Shell’s Upstream President as saying.
The energy firm said the increase in feedstock to NLNG, via the Train 7 project that aims to expand the Bonny Island terminal’s production capacity, is in line with Shell’s plans to grow its global LNG volumes by an average of four to five per cent per year until 2030.
It will also bolster NLNG’s contribution to Nigeria’s national economic development goals, including jobs in construction and operations.
The HI field was discovered in 1985 and lies in 100 m of water depth around 50bkm from the shore.
SNEPCo stated that current estimated recoverable resource volumes of the HI project are approximately 285 million barrels of oil equivalent