Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian-owned energy company Vaaris Energy Limited, transferring a domestic gas distribution network serving more than 130 industrial and commercial customers to indigenous ownership.
The agreement, announced by Shell Petroleum B.V., marks the international energy company’s exit from Nigeria’s domestic gas distribution business after more than 25 years. The transaction remains subject to regulatory conditions and approvals, while the financial terms have not been disclosed.
Established in 1998, Shell Nigeria Gas supplies natural gas to businesses through approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states. Its network serves industrial and commercial customers that depend on natural gas to support their operations.
The acquisition will give Vaaris Energy control of an established gas distribution business, including its existing pipeline infrastructure and customer base. The transaction presents an opportunity for the Nigerian-owned company to strengthen its position in the domestic gas market and expand its role in supplying energy to businesses.
Vaaris Energy operates across Nigeria’s oil and gas value chain and has an existing presence in the country. However, the companies have not disclosed detailed plans for the business following completion of the transaction.
Commenting on the agreement, Shell’s Country Chair in Nigeria, Elohor Aiboni, said Shell Nigeria Gas had served industrial and commercial customers for more than 25 years, supported by the commitment and expertise of its workforce.
She said the agreement would provide a stronger platform for the business’s next phase under new ownership, while Shell continues to focus on deepwater operations and integrated gas investments in Nigeria.
The transaction covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Until the deal is completed, Shell Nigeria Gas Group will remain part of Shell and continue its operations and customer services as usual.
The sale is limited to the domestic gas distribution business and does not include upstream gas production, liquefied natural gas operations or international gas trading. Shell will retain its interests in Nigeria’s deepwater sector and integrated gas business, including Nigeria LNG Limited.
Shell said the divestment aligns with its strategy to simplify its portfolio and concentrate investments on areas where it believes it has competitive strengths.
For Nigeria’s energy sector, the transaction places an established gas distribution network under indigenous ownership. The change could create opportunities for Vaaris Energy to build on the existing infrastructure and customer relationships, although the extent of any expansion or additional investment will depend on the company’s plans after the acquisition is completed.
The deal also highlights the evolving role of indigenous companies in Nigeria’s energy industry, particularly in domestic gas distribution, where reliable supply is important to industrial activity and commercial operations.
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