Gas
Shell agrees to divest Nigerian gas unit amid wider portfolio shifts
Energy major Shell has agreed to transfer its domestic gas distribution business in Nigeria to Vaaris Energy while progressing international projects and share buybacks.
Key points
- Shell has agreed to sell its domestic gas distribution network to Vaaris Energy.
- The transaction excludes Nigeria LNG and upstream gas production assets.
- Operational milestones include the phase three start-up of the Silvertip project.
What happened
Energy major Shell has reached an agreement to transfer its domestic gas distribution subsidiary in Nigeria to Vaaris Energy, according to reporting by Reuters. The pending transaction covers infrastructure spanning approximately 170 kilometres of pipelines that serve more than 130 commercial and industrial users.
Upstream gas production and liquefied natural gas operations remain outside the scope of the divestment. Shell retains its 25.6 percent holding in Nigeria LNG and continues to prioritise deepwater assets in the country following the 2025 sale of its onshore oil subsidiary. The latest agreement requires regulatory approval before completion, and financial terms were not disclosed.
Why it matters
In Nigeria, where fuel exports accounted for 85.9 percent of total merchandise exports in 2025 according to World Bank figures, shifts in major operator portfolios carry significant weight for domestic energy supply and industrial consumers. While stepping back from downstream distribution networks, the company is maintaining its exposure to larger export-orientated gas structures.
Operationally, the portfolio adjustments coincide with broader corporate updates. Shell Offshore confirmed the commencement of the third phase at the Silvertip development in the deepwater Gulf of Mexico, which anticipates a peak production rate of up to 6,000 barrels of oil equivalent per day. Additionally, the firm secured a 30 percent stake in the Bay du Nord project offshore Newfoundland and Labrador from Equinor.
What comes next
The proposed sale of the Nigerian distribution business remains subject to regulatory clearance. Meanwhile, the corporation continues executing its share buyback programme on European trading venues ahead of its third-quarter financial results scheduled for publication on 29 October 2026. Other international assets, such as Qatar's Pearl plant, are undergoing phased repairs slated for completion in early 2027.
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 2024Written 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.
