Shell has signed an agreement to transfer its entire interest in the Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, marking its planned exit from the country’s domestic gas distribution business.
The agreement, announced on Tuesday, October 13, 2026, covers Shell’s gas distribution operations, which supply natural gas to industrial and commercial customers across Nigeria.
The transaction forms part of Shell’s strategy to streamline its business portfolio and concentrate investments on areas where it has stronger competitive advantages, particularly deepwater operations and integrated gas.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the company’s domestic gas business had served industrial and commercial customers for more than 25 years.
She expressed confidence that the agreement would provide the business with a stronger foundation for its next phase under new ownership, while reaffirming Shell’s commitment to its strategic operations in Nigeria.
Deal Awaits Regulatory Approval
The proposed sale is subject to regulatory conditions and the necessary approvals. The companies have not disclosed the financial terms of the agreement.
Until the transaction is completed, Shell Nigeria Gas Group will remain part of Shell and continue operating normally, including the provision of services to existing customers.
The agreement also covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Shell Nigeria Gas Operations
Established in 1998, Shell Nigeria Gas Limited distributes natural gas to commercial and industrial customers through a pipeline network spanning approximately 170 kilometres across Ogun, Abia and Rivers states.
The company serves more than 130 connected industrial and commercial customers, providing gas for their operational and production needs.
Its activities are focused on domestic gas distribution rather than upstream gas production, liquefied natural gas operations or international gas trading.
Vaaris Energy Expands Its Position in Nigeria’s Energy Sector
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 acquisition is expected to place Shell Nigeria Gas under new ownership once the necessary approvals are secured. However, details concerning the completion timeline and the buyer’s future plans for the business have not been disclosed.
The transaction comes amid changes in Nigeria’s energy industry, as international oil companies review their portfolios and local firms take on greater roles in selected segments of the sector.
Shell said it would continue to focus on its strategic deepwater and integrated gas operations in Nigeria, including its interest in Nigeria LNG.
The proposed divestment therefore represents a change in ownership for Shell’s domestic gas distribution business rather than a complete withdrawal from Nigeria’s energy industry.
