Gas
Shell agrees to sell Nigerian gas distribution unit to Vaaris Energy
Shell has reached an agreement to transfer its domestic gas distribution business in Nigeria to local firm Vaaris Energy.
Key points
- Shell has signed an agreement to divest its entire stake in the Shell Nigeria Gas Group.
- The network includes roughly 170 kilometres of pipelines supplying over 130 industrial and commercial clients.
- The transaction aligns with Shell's strategy to concentrate on deepwater production and integrated gas operations in the country.
What happened
According to BusinessDay reporting, Shell has agreed to dispose of its domestic gas distribution operations in Nigeria to Vaaris Energy Limited. The transaction involves the complete transfer of the Shell Nigeria Gas Group, which has provided natural gas to industrial and commercial clients for over 25 years. Financial terms of the agreement were not disclosed.
The target business operates approximately 170 kilometres of pipelines across Ogun, Abia and Rivers states, serving more than 130 connected customers. The sale also encompasses Shell Nigeria Gas Holding B.V., which was established in 2019. The buying entity, Vaaris Energy, is a domestic firm with existing operations across the local oil and gas value chain.
Why it matters
BusinessDay noted that the divestment forms part of a wider effort by the energy major to streamline its portfolio and focus on assets with higher returns and lower security risks, such as deepwater projects and its stake in Nigeria LNG. Domestic gas supply remains a key focus for Nigerian authorities seeking to address chronic power shortages and reduce reliance on imported fuels for industrial users.
What comes next
The completion of the transaction remains subject to necessary regulatory conditions and approvals. Until the deal closes, operations will continue without interruption, and the distribution network will remain under Shell ownership.
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.
