Shell PLC ( SHEL ) shares are trading lower premarket on Tuesday. The company announced that Shell Nigeria Exploration and Production Company Limited and Sunlink Energies and Resources Limited have approved the final investment decision for the HI gas project, located offshore in Nigeria.

Project Details

Discovered in 1985, the HI field lies about 50 kilometers offshore in 100 meters of water and holds an estimated 285 million barrels of oil equivalent in recoverable resources.

The development is expected to produce up to 350 million standard cubic feet of gas per day, or roughly 60,000 barrels of oil equivalent, at peak output.

Shell will supply the gas to Nigeria LNG, where Shell holds a 25.6% interest, to support LNG production and exports to global markets.

The company expects production to commence before the end of the decade.

Shell expects estimated recoverable resources of 285 million barrels of oil equivalent.

The project supports Shell's 2025–2030 plan to add over 1 million boe/d from new upstream and gas developments and grow combined production by about 1% annually.

Peter Costello, Shell's Upstream President, said, "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."

Shell plans to boost feedstock supply to Nigeria LNG through the Train 7 project, which will expand the Bonny Island terminal's production capacity.

This will support the company's goal of increasing global LNG output by 4%–5% annually through 2030.

Last week, the oil giant trimmed the guidance for production at Integrated Gas to around 910 and 950 thousand boe/d (versus the prior outlook of 910 – 970 thousand boe/d).

Investors can gain exposure to the stock via Precidian ETFs Trust Shell plc ADRhedged and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF .

Price Action: SHEL shares are down 1.39% at $71.06 premarket at the last check on Tuesday.

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