Susan Abayomi
Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, marking its exit from Nigeria’s domestic gas distribution business after more than 25 years of operations.
The transaction, announced on Tuesday, October 13, 2026, will transfer ownership of Shell’s domestic gas distribution operations to Vaaris Energy, subject to regulatory requirements and the necessary approvals.
Shell Nigeria Gas, established in 1998, supplies natural gas to industrial and commercial customers in Nigeria. The company operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.
The business serves more than 130 industrial and commercial customers, providing natural gas to support their operations.
According to Shell, the transaction covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in SNG Limited.
Elohor Aiboni, Shell’s country chair in Nigeria, said the gas distribution business had served industrial and commercial customers for more than 25 years, supported by the commitment and expertise of its workforce.
She expressed confidence that the agreement would provide a stronger platform for the business to continue its operations under new ownership.
Shell explained that the sale aligns with its strategy to streamline its portfolio and concentrate investments on areas where it has competitive strengths.
Despite the planned divestment, the company will retain its interests in Nigeria’s deepwater oil production and integrated gas sectors, including its 25.6 per cent stake in Nigeria LNG Limited.
Shell Nigeria Gas does not engage in upstream gas production, liquefied natural gas production or international gas trading. Its operations are focused on distributing natural gas to industrial and commercial customers within Nigeria.
The company also confirmed that Shell Nigeria Gas would continue operating normally and serving its customers until the transaction is completed.
The latest agreement follows Shell’s earlier divestment from Nigeria’s onshore oil operations. In March 2025, the company completed the sale of its former Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited, to Renaissance Africa Energy Company.
That transaction formed part of Shell’s broader strategy to reduce its exposure to onshore oil production in the Niger Delta while maintaining investments in deepwater and integrated gas operations.
The sale of Shell Nigeria Gas represents another change in the ownership structure of Nigeria’s energy industry, with a growing role for indigenous companies in the country’s oil and gas value chain.
However, Shell’s latest decision does not amount to a complete withdrawal from Nigeria, as the company continues to maintain significant interests in the country’s offshore oil and gas industry.
The financial terms of the agreement with Vaaris Energy were not disclosed in the announcement.
The completion of the transaction will depend on the fulfilment of applicable regulatory conditions and approvals.
