Shell Petroleum B.V. has agreed to sell its entire stake in the Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, marking its exit from domestic gas distribution in Nigeria.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the agreement would create a stronger foundation for the business under new ownership while allowing Shell to concentrate on its main investment priorities.
“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.”
The transaction remains subject to regulatory conditions and approvals. It covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in Shell Nigeria Gas Limited (SNG).
Shell said the gas distribution business would continue operating as usual and serving its customers until the sale is completed.
Established in 1998, SNG supplies natural gas to industrial and commercial customers. It operates about 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers States, serving more than 130 connected customers.
The company does not engage in upstream gas production, liquefied natural gas (LNG) operations or international gas trading.
Vaaris Energy 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 strategy to simplify its business portfolio and direct investment towards areas where it has competitive strengths. The company will continue focusing on deepwater projects and integrated gas operations in Nigeria, including its interest in Nigeria LNG.
