Global energy major Shell Petroleum Development Company (SPDC), in partnership with Sunlink Petroleum Limited, has approved the development of the HI Gas Project, a large-scale natural gas initiative expected to deliver 350 million standard cubic feet (scf) of gas per day upon completion.
The approval marks a major milestone in Nigeria’s efforts to expand domestic gas production, enhance energy security, and strengthen its transition toward cleaner energy sources.
According to industry sources, the HI Gas Project will be implemented under a Joint Venture framework between Shell and Sunlink, combining Shell’s technical expertise with Sunlink’s strategic investments in Nigeria’s gas infrastructure network. The project is designed to support both industrial gas supply and power generation, aligning with the Federal Government’s Decade of Gas Initiative aimed at positioning gas as the nation’s primary energy source.
Once operational, the facility is projected to significantly boost Nigeria’s gas output, contributing to the reduction of gas flaring and supporting downstream users such as fertilizer plants, power stations, and manufacturing companies.
Shell’s Managing Director for Nigeria, Osagie Okunbor, described the HI Gas Project as a “transformative development for Nigeria’s energy landscape,” emphasizing that the project will provide sustainable gas supply, create local jobs, and foster community development.
“This project underscores Shell’s long-term commitment to Nigeria and our support for the country’s energy transition goals. By unlocking more domestic gas resources, we can power industries, reduce emissions, and create shared prosperity,” Okunbor stated.
Sunlink Petroleum Limited’s CEO, Dr. Sunny Ogbuoji, also hailed the project as a “landmark collaboration” between local and international partners that will accelerate Nigeria’s industrial growth and contribute to its economic diversification.
“The HI Gas Project is a testament to what is possible when innovation meets collaboration. We are proud to be part of an initiative that directly supports national development and sustainable energy delivery,” Ogbuoji said.
The HI Gas facility will include processing, compression, and transmission infrastructure, ensuring efficient delivery to end-users through the national gas pipeline system managed by the Nigerian Gas Infrastructure Company (NGIC).
Energy analysts have described the approval as a strategic move to meet rising domestic gas demand while positioning Nigeria as a competitive player in the regional gas market. The 350 million scf/day output, they note, could power several gigawatts of electricity and serve multiple industrial clusters across the Niger Delta and beyond.
The project’s final investment decision (FID) follows months of technical assessments and regulatory consultations with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Ministry of Petroleum Resources.
Construction is expected to commence in early 2026, with first gas delivery targeted for 2028, subject to final regulatory approvals.
With global energy companies increasingly focusing on natural gas as a transition fuel, the HI Gas Project represents a major step toward reducing Nigeria’s carbon footprint, improving energy access, and driving long-term economic growth through cleaner, reliable, and affordable gas supply.
