Shell Petroleum B.V. has signed an agreement to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, as the international oil major continues to streamline its operations and focus on selected investments in Nigeria.
The proposed sale will transfer Shell’s domestic gas distribution business to Vaaris, subject to regulatory approvals and other conditions. The companies have not disclosed the financial terms of the transaction. Shell said the decision aligns with its strategy to simplify its business portfolio and concentrate investments in areas where it has competitive strengths.
Elohor Aiboni, Shell’s country chair in Nigeria, said the company’s gas distribution business had served industrial and commercial customers for more than 25 years.
“Shell Nigeria Gas has served industrial and commercial customers in Nigeria for more than 25 years, supported by the commitment and expertise of its people. We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership. Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria,” she said.
Established in 1998, Shell Nigeria Gas Limited supplies natural gas to businesses through approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states. The company serves more than 130 connected commercial and industrial customers. Its operations focus on domestic gas distribution. It does not engage in upstream gas production, liquefied natural gas operations or international gas trading.
The transaction also covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited. For Vaaris Energy, the acquisition provides an opportunity to expand its presence in Nigeria’s domestic gas market and take control of an established distribution network serving industrial and commercial customers.
The transaction also comes as Nigeria seeks to expand the use of natural gas to support industrial activity and improve energy supply. Reliable gas distribution infrastructure is important for businesses that depend on gas for manufacturing and other commercial operations. However, the acquisition’s eventual impact will depend on Vaaris Energy’s ability to maintain the existing network, serve current customers and invest in expanding distribution where demand supports further growth.
Shell said the gas business would continue operating as usual until the transaction is completed. Customers will therefore continue receiving supplies from Shell Nigeria Gas Group during the transition.The sale does not mark Shell’s complete exit from Nigeria’s energy industry. The company said it would continue to focus on deepwater operations and integrated gas, including its interest in Nigeria LNG. The decision reflects Shell’s wider effort to concentrate capital on selected businesses rather than maintain the same level of involvement across all parts of the energy value chain.
For Nigeria’s energy sector, the transfer places an established domestic gas distribution business under local ownership. Whether that change produces wider benefits will depend on the new owner’s investment plans, operational capacity and ability to expand access to reliable gas supplies.The transaction remains subject to regulatory approvals, and no completion date has been announced.
