Shell exits Nigeria’s domestic gas distribution, sells business to Vaaris

By Adewale Sanyaolu

Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to indigenous energy firm, Vaaris Energy Limited, marking its exit from Nigeria’s domestic gas distribution business after more than two decades of supplying industrial and commercial customers.

Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational footprint in the country.

The transaction, announced by Shell Petroleum B.V., transfers ownership of a business established to distribute natural gas to Nigerian industries, with about 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states and more than 130 connected customers.

The divestment underscores Shell’s continued restructuring of its Nigerian portfolio, as the international energy major concentrates investments on deepwater oil production and integrated gas operations, including its interest in Nigeria LNG Limited.

Shell Nigeria Gas, established in 1998, has played a role in supplying gas to industrial and commercial users.

Commenting on the transaction, Shell’s Country Chair in Nigeria, Elohor Aiboni, said the business had served industrial and commercial customers for more than 25 years, supported by the commitment and expertise of its workforce.

She said the agreement would provide a stronger platform for the company’s next phase of growth under new ownership, while reaffirming Shell’s commitment to deepwater and integrated gas investments in Nigeria.

The transaction covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.

Completion remains subject to regulatory conditions and approvals.

Until the deal is concluded, Shell Nigeria Gas Group will remain part of Shell and continue its operations and customer services as usual.

The company’s operations are confined to domestic gas distribution. It is not involved in upstream gas production, liquefied natural gas (LNG) or international gas trading.

Shell said the sale aligns with its strategy of simplifying its portfolio and directing capital towards businesses where it believes it has competitive strengths.

Its retained interests in Nigeria’s deepwater sector and integrated gas business, including Nigeria LNG, remain central to that strategy.

The transaction’s financial terms were not disclosed in the announcement.

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