Shell Exits Nigeria Domestic Gas Distribution In Deal With Vaaris Energy

Shell Petroleum B.V. has signed an agreement to sell its entire interest in Shell Nigeria Gas Group to indigenous energy company Vaaris Energy Limited, marking Shell’s exit from Nigeria’s domestic gas distribution business after more than 25 years.

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. Financial terms of the deal were not disclosed.

“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,” said Elohor Aiboni, Shell’s Country Chair in Nigeria. “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.”

Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers and operates approximately 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 operations or international gas trading.

Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational footprint in the country.

The transaction remains subject to regulatory conditions and approvals. Until completion, Shell Nigeria Gas Group will remain part of Shell and will continue to serve its customers and operate as usual.

Shell said the sale is consistent with its strategy of simplifying its portfolio and concentrating investment in areas where it has competitive strengths.

The company noted that its continued focus on Deepwater and Integrated Gas in Nigeria, including its interest in Nigeria LNG, exemplifies that strategy.

The divestment follows Shell’s earlier withdrawal from onshore oil production in the Niger Delta, where it agreed in 2024 to sell its onshore subsidiary to a consortium of local companies.

The transaction also comes as Shell raised its third-quarter integrated gas production forecast to between 740,000 and 780,000 barrels of oil equivalent per day, up from its previous estimate of 570,000 to 630,000.