Shell Petroleum B.V. has agreed to sell its entire interest in the Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, marking a change in ownership of its domestic gas distribution business.
Shell Nigeria Gas (SNG) supplies natural gas to industrial and commercial customers across Nigeria and has operated in the country for more than 25 years.
Shell’s Country Chair in Nigeria, Elohor Aiboni, announced the transaction on Tuesday, saying the agreement would provide the business with a stronger platform for future growth under new ownership while allowing Shell to concentrate on its strategic deepwater and integrated gas operations in Nigeria.
In a statement signed by Shell’s Country Communications Manager, Gladys Afam-Anadu, Aiboni said the company’s domestic gas distribution business had been supported by the commitment and expertise of its workforce over the years.
She added that Shell would continue to focus on areas where it maintains strategic interests and competitive strengths in the Nigerian energy sector.
The transaction remains subject to regulatory conditions and the necessary approvals. Until the deal is completed, Shell Nigeria Gas will remain part of the Shell Group and continue its operations and customer services as usual.
Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial 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, providing gas for various business and industrial activities.
However, SNG 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.
Vaaris Energy Limited, the prospective buyer, is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
Shell said the sale aligns with its broader strategy of simplifying its business portfolio and directing investments towards areas where it has established strengths.
The company cited its continued involvement in Nigeria’s deepwater operations and integrated gas sector, including its interest in Nigeria LNG, as examples of this approach.
The deal comes as companies across the energy sector continue to reassess their portfolios and investment priorities, with the transfer expected to place Shell Nigeria Gas under new ownership once the required regulatory approvals and other conditions are met.
