Shell’s Offshore Gas Project: A New Era for Nigeria’s LNG Exports?

For years, Nigeria’s gas potential has been underutilized, but recent moves by energy giants signal a renewed push to transform natural gas into a reliable source of export revenue and domestic energy security.

 Shell made an announcement regarding offshore gas initiative, which aims to tap into deepwater reserves off Nigeria’s coast and channel the output toward LNG exports. The timing could not be better. As global demand for cleaner energy rises and Europe diversifies its gas supply away from Russia, Nigeria’s LNG industry finds itself standing at a critical crossroads of opportunity.

Nigeria is Africa’s leading oil producer, but when it comes to natural gas, much of its potential remains unrealized. The country holds one of the largest proven gas reserves on the continent, yet decades of flaring and underinvestment have limited its export capacity. Shell’s new project seeks to change that.

According to the company’s local subsidiary, the offshore development will supply feed gas to Nigeria LNG (NLNG) in Bonny Island, where the country’s major LNG exports originate. By boosting feedstock availability, this project is expected to increase Nigeria’s LNG production capacity, strengthen its position in global markets, and generate significant foreign exchange earnings.

This development aligns with Nigeria’s broader “Decade of Gas” policy, which aims to expand the use of gas domestically while maximizing export potential. If executed efficiently, Shell’s project could accelerate progress toward that vision and reduce the country’s dependence on crude oil exports.

One of the biggest advantages for Shell and Nigeria is timing. LNG demand has surged in recent years as countries seek alternatives to coal and oil. In particular, Europe and parts of Asia are investing heavily in LNG infrastructure to secure long-term supply contracts.

Beyond exports, the project could have significant domestic benefits. The construction and operation phases are expected to create jobs, stimulate local content development, and attract ancillary investments in logistics, fabrication, and services.

Gas development also presents an opportunity to address one of Nigeria’s longest-standing energy challenges, electricity. With a more reliable gas supply, power generation plants can operate at higher capacity, reducing the country’s chronic energy shortages.

Furthermore, gas flaring, a major environmental concern, could be reduced as companies capture and monetize more of the gas that is currently wasted. This would contribute to Nigeria’s climate goals and improve environmental sustainability.

Shell’s offshore gas project represents more than just another investment in Nigeria’s energy sector — it could mark the beginning of a new chapter for LNG exports. If properly managed, this initiative has the potential to boost Nigeria’s foreign exchange earnings, create thousands of jobs, and position the country as a major player in the global gas market once again.

In the global race for clean and reliable energy, we cannot afford to lag behind.