Gas
Vaaris Energy acquires Shell's Nigerian gas distribution business
Shell Plc has agreed to sell its entire stake in its Nigerian domestic gas distribution business to local firm Vaaris Energy Ltd.
Key points
- Shell Nigeria Gas Group is being sold to Vaaris Energy Ltd, pending regulatory approvals.
- The network spans about 170 kilometres across Ogun, Abia and Rivers states, serving over 130 customers.
- Shell will maintain its focus on deepwater operations and integrated gas in Nigeria, including Nigeria LNG.
What happened
Shell Plc has reached an agreement to sell its entire interest in the Shell Nigeria Gas Group to Vaaris Energy Ltd., according to BusinessDay reporting. The transaction transfers a pipeline network of approximately 170 kilometres, operating across Ogun, Abia and Rivers states, to domestic management. Established in 1998, the distribution business serves more than 130 industrial and commercial customers. Financial terms of the agreement were not disclosed, and the transaction remains subject to regulatory approvals without a fixed closing date.
Leadership and background
According to BusinessDay, the buyer's board comprises experienced figures from the Nigerian oil and energy sector, with several members having backgrounds linked to Seplat Energy. Tubotein George serves as the chairman of Vaaris, bringing decades of experience across exploration, production, engineering and finance. The leadership team also includes Kazeem Abiodun Raimi, Nwangboje Uche, Alfred O. Temile, Johnnie Eni and Shawley J. Coker, all holding extensive track records in domestic energy operations, corporate governance and financial management.
Why it matters
Elohor Aiboni, Shell's country chair in Nigeria, stated that the agreement establishes a strong platform for the business under new ownership. While divesting its domestic gas distribution footprint, Shell stated that it will continue to concentrate on deepwater and integrated gas assets in the country, including its stake in Nigeria LNG. Shell will continue to serve existing customers until the transaction officially closes.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
72.9% of electricity in Nigeria came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
