Shell Sells Nigeria Gas Distribution Business to Vaaris Energy as Portfolio Reshaping Continues
LAGOS, Nigeria – Shell Petroleum B.V. has agreed to divest its entire stake in Shell Nigeria Gas Group (SNG) to indigenous energy company Vaaris Energy Limited, marking another strategic step in the energy major’s efforts to streamline its global portfolio.
The transaction, which remains subject to regulatory approval, includes a domestic gas distribution business that supplies more than 130 industrial and commercial customers across Ogun, Abia and Rivers states.
Established in 1998, Shell Nigeria Gas operates approximately 170 kilometres of gas pipeline infrastructure, providing natural gas to industries and businesses that rely on cleaner and more efficient energy solutions.
Shell said the sale aligns with its broader strategy of focusing investment on areas where it maintains a strong competitive advantage, particularly deepwater oil and gas developments and integrated gas operations.
Commenting on the transaction, Shell Nigeria Country Chair Elohor Aiboni highlighted the significant contribution the business has made to Nigeria’s industrial sector over the past 25 years.
She noted that the agreement would provide a solid foundation for the company’s next phase of growth under new ownership while enabling Shell to maintain its focus on strategic operations within the country.
The deal also covers Shell Nigeria Gas Holding B.V., a holding company established in 2019 that owns nearly all shares in Shell Nigeria Gas Limited.
For Vaaris Energy, the acquisition represents an opportunity to strengthen its position within Nigeria’s energy sector.
The company already has interests spanning multiple segments of the oil and gas value chain and has established a growing footprint in the country’s energy industry.
Despite the divestment, Shell reaffirmed its commitment to Nigeria, stating that it will continue to focus on its deepwater business and integrated gas projects, including its participation in Nigeria LNG.
Until the transaction receives all necessary approvals and reaches completion, Shell Nigeria Gas Group will continue operating under Shell ownership and maintain normal services to its customers.
The acquisition reflects a broader shift within Nigeria’s energy landscape, with indigenous companies increasingly taking ownership of strategic energy assets as international oil majors realign their portfolios and concentrate on core operations.
