Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian firm Vaaris Energy Limited, marking its exit from the domestic gas distribution market after more than 25 years. The agreement, announced by Shell Petroleum B.V. on Tuesday, October 13, 2026, will transfer the business that operates approximately 170 kilometres of gas pipelines across Ogun, Abia and Rivers states, supplying natural gas to more than 130 industrial and commercial customers.
Deal Details and Scope
The transaction covers Shell's entire domestic gas distribution business in Nigeria, but does not include the company's upstream gas production, liquefied natural gas operations, or international gas trading. Shell retains its deepwater and integrated gas operations in Nigeria, including its interest in Nigeria LNG Limited, which produces liquefied natural gas for domestic and international markets.
Financial terms of the agreement were not disclosed. Completion remains subject to regulatory conditions and approvals, meaning the business will continue operating under Shell until the transaction is finalised.
Background of Shell Nigeria Gas
Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers through its pipeline network. The business serves more than 130 connected customers, including businesses that depend on natural gas for industrial and commercial operations.
Shell's Country Chair in Nigeria, Elohor Aiboni, said the business had served industrial and commercial customers in the country for more than 25 years, with support from its workforce. Aiboni said the agreement would provide a stronger platform for the business's next phase under new ownership.
Strategic Rationale and Impact
The sale aligns with Shell's strategy to simplify its portfolio and concentrate investment on areas where it believes it has competitive strengths. In Nigeria, the company plans to maintain its focus on deepwater oil production and integrated gas operations.
Vaaris Energy is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country. The acquisition will transfer Shell's domestic gas distribution interests to local ownership, while the company continues to pursue its other strategic energy operations in Nigeria.
