Gas
Shell agrees to sell domestic gas distribution business to Vaaris Energy
Shell Petroleum B.V. has reached an agreement to transfer its entire interest in Shell Nigeria Gas Group to local operator Vaaris Energy Limited.
Key points
- The transaction includes approximately 170 kilometres of gas pipelines across Ogun, Abia and Rivers states.
- Shell Nigeria Gas supplies more than 130 industrial and commercial customers.
- The sale remains subject to regulatory approvals and conditions.
- Shell will maintain its deepwater operations and integrated gas interests in the country.
What happened
Shell has moved to exit the domestic gas distribution market in Nigeria by agreeing to divest its holding in Shell Nigeria Gas Group. Real Broadcasting Network and Yahoo Finance reported on Tuesday that the assets are being acquired by Vaaris Energy Limited, a privately held domestic energy firm.
Established in 1998, the distribution network comprises roughly 170 kilometres of pipelines located in Ogun, Abia and Rivers states. The infrastructure serves upward of 130 commercial and industrial clients. Financial terms of the agreement were not disclosed by the companies.
Why it matters
According to Business Insider Africa, the divestment follows Shell's March 2025 transfer of its onshore oil subsidiary to Renaissance Africa Energy. Elohor Aiboni, Shell's country chair, noted that the distribution business has operated for over 25 years.
While scaling back its onshore footprint, the energy major continues to prioritize offshore assets and liquefied natural gas. The company recently expanded its stake in the Bonga field and advanced the Bonga North development. Meanwhile, the transaction highlights the expanding footprint of domestic operators within the country's energy sector.
What comes next
Operations will continue under normal conditions while the companies await regulatory clearances. Shell stated that services for connected businesses will remain uninterrupted during the transition period.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
- Real Broadcasting NetworkShell Quits Nigeria’s Gas Distribution Business
- Yahoo FinanceShell to Exit Nigeria’s Domestic Gas Business
- Business Insider AfricaBritish energy giant Shell moves to exit Nigeria’s domestic gas distribution business after more than 25 years, selling network serving over 130 businesses
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.
