Gas
Shell agrees to divest Nigerian gas distribution unit to Vaaris Energy
Shell has agreed to transfer its domestic gas distribution business in Nigeria to Vaaris Energy as part of an ongoing portfolio rationalisation.
Key points
- Shell has signed an agreement to sell the Shell Nigeria Gas Group to Vaaris Energy.
- The transaction remains subject to regulatory approvals, with financial terms undisclosed.
- Shell retains its 25.6 percent stake in Nigeria LNG and its focus on deepwater assets.
Portfolio reshaping in Nigeria
According to reporting by Reuters, energy major Shell has reached an agreement to divest its entire holding in the Shell Nigeria Gas Group to Vaaris Energy. The business in question supplies more than 130 industrial and commercial clients through a pipeline network spanning approximately 170 kilometres.
The proposed transaction does not encompass upstream gas production or liquefied natural gas exports. Reuters noted that Shell is maintaining its 25.6 percent equity stake in Nigeria LNG and continues to prioritise integrated gas and deepwater operations within the country following the 2025 sale of its onshore oil subsidiary.
Wider corporate updates
Ad-hoc-news.de reported that the divestment agreement lacks a publicly disclosed purchase price and awaits formal regulatory clearance. The move coincides with broader operational developments for Shell, including the start-up of the Silvertip project in the Gulf of Mexico and an agreed stake in the Bay du Nord project offshore Canada.
Concurrently, Shell has continued executing its share buyback programme, purchasing hundreds of thousands of shares on trading venues in London and Amsterdam for cancellation under a plan announced on 30 July.
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.
