SHELL has agreed to exit Nigeria’s domestic gas distribution business by selling its entire stake in Shell Nigeria Gas Group to local energy firm Vaaris Energy Limited.
Shell Petroleum B.V. signed the agreement, which covers the company’s interests in the gas distribution business serving industrial and commercial customers across Nigeria.
The company disclosed the transaction in a statement on Tuesday, noting that completion depends on regulatory approvals and other conditions.
Shell said the proposed divestment aligns with its strategy to streamline its portfolio and direct investments towards businesses where it has competitive advantages.
Shell’s Country Chair in Nigeria, Elohor Aiboni,said the company’s domestic gas distribution business had served industrial and commercial customers for more than 25 years, supported by the experience and commitment of its workforce.
“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,” Aiboni said.
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Gas infrastructure and customer base
Established in 1998, Shell Nigeria Gas Limited operates approximately 170 kilometres of gas pipelines across Ogun, Abia and Rivers states.
The company supplies natural gas to more than 130 connected commercial and industrial customers, providing fuel for businesses that depend on gas for their operations.
The transaction also covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in Shell Nigeria Gas Limited.
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Shell clarified that the business does not participate in upstream gas production, liquefied natural gas operations or international gas trading. Its activities are concentrated on distributing gas within Nigeria’s domestic market.
The sale will therefore transfer Shell’s domestic gas distribution interests to Vaaris Energy, while the company retains its focus on other segments of Nigeria’s energy industry.
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Shell retains focus on deepwater, integrated gas
Shell said Shell Nigeria Gas Group would remain part of its portfolio and continue operating normally until the transaction is completed.
Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
The proposed sale comes as Shell continues to concentrate its Nigerian operations on deepwater oil production and integrated gas activities, including its interest in Nigeria LNG.
The company did not disclose the financial terms of the agreement in the statement.
Following completion, Vaaris Energy will take ownership of the domestic gas distribution business, while Shell will continue pursuing investments in the Nigerian energy segments identified as strategic to its portfolio.
