Shell Petroleum B.V. has agreed to sell its entire stake in Shell Nigeria Gas Group to indigenous energy company Vaaris Energy Limited, ending its direct involvement in domestic gas distribution in Nigeria.
The transaction, which is subject to regulatory approvals and other conditions, covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited (SNG).
Shell Nigeria Gas has supplied natural gas to industrial and commercial customers for more than 25 years, operating about 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states and serving more than 130 connected customers.
Announcing the agreement in a statement on Tuesday, October 13, Shell’s Country Chair in Nigeria, Elohor Aiboni, said the company believed the sale would provide a stronger platform for the business under new ownership.
She said Shell would continue to focus on its strategic deepwater and integrated gas operations in Nigeria.
Until the transaction is completed, Shell Nigeria Gas Group will remain part of Shell and continue to serve customers and operate as usual.
Established in 1998, SNG focuses on domestic gas distribution and does not engage in upstream gas production, liquefied natural gas (LNG) operations or international gas trading.
Vaaris Energy is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
Shell said the divestment aligns with its strategy of simplifying its portfolio and concentrating investment on areas where it has competitive strengths. Its continued involvement in deepwater operations and integrated gas, including its interest in Nigeria LNG, reflects that approach.
