Major Shake-Up In Nigeria’s Energy Sector As Shell Sells Gas Distribution Business To Vaaris Energy

Shell Petroleum B.V. has announced plans to exit Nigeria’s domestic gas distribution business after agreeing to sell its entire interest in Shell Nigeria Gas Group (SNG) to Vaaris Energy Limited, a Nigerian energy company.

The company disclosed the development in a statement on Tuesday, explaining that the transaction covers its domestic gas distribution operations in Nigeria.

Shell said Shell Nigeria Gas Group would continue serving its customers and operating as usual until the transaction is completed.

The company explained that the sale aligns with its broader strategy to simplify its business portfolio and concentrate investments on areas where it has competitive strengths.

Shell clarified that SNG is focused on domestic gas distribution and does not participate in upstream gas production, liquefied natural gas (LNG) operations or international gas trading.

The company also highlighted SNG’s longstanding contribution to Nigeria’s industrial and commercial sectors, noting that the business has supplied natural gas to customers for more than 25 years.

Shell expressed confidence that the agreement would provide the business with a stronger platform for future growth under new ownership, while reaffirming its commitment to strategic deepwater and integrated gas operations in Nigeria.

Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers through approximately 170 kilometres of pipeline infrastructure spanning Ogun, Abia and Rivers states.

Vaaris Energy Limited, the acquiring company, is a Nigerian energy firm with interests across the oil and gas value chain and an established operational presence in the country.

The transaction marks a significant development in Nigeria’s domestic gas distribution sector, with the business set to move from Shell’s ownership to a locally based energy company once the deal is completed.

According to Bush Radio Academy, Shell’s decision reflects its ongoing effort to streamline its portfolio while retaining a focus on strategic deepwater and integrated gas opportunities in Nigeria. The financial terms of the transaction and its expected completion date were not disclosed in the statement provided.