Gas
Shell exits Nigerian domestic gas sector with Vaaris sale
Shell has agreed to sell its entire stake in Shell Nigeria Gas to domestic firm Vaaris Energy as part of a portfolio simplification strategy.
Key points
- Vaaris Energy will acquire the Shell Nigeria Gas Group, marking Shell's departure from local gas distribution.
- The network spans roughly 170 kilometres of pipeline across Ogun, Abia and Rivers states, serving over 130 clients.
- Shell stated it will maintain its focus on Nigerian deepwater operations and integrated gas projects like Nigeria LNG.
What happened
Shell Petroleum B.V. has reached an agreement to transfer its full ownership in the Shell Nigeria Gas Group to Vaaris Energy Limited, a private Nigerian energy enterprise. Mobility Plaza reported that the transaction includes Shell Nigeria Gas Holding B.V., which controls the operating company, though financial terms remain undisclosed.
Founded in 1998, Shell Nigeria Gas manages approximately 170 kilometres of distribution pipelines. The infrastructure supplies natural gas to more than 130 commercial and industrial users situated in Abia, Ogun and Rivers states. Vaaris Energy already holds investments across the domestic energy sector.
Why it matters
According to Mobility Plaza, the divestment marks Shell's complete withdrawal from domestic gas distribution within Nigeria. Elohor Aiboni, Shell's Country Chair in Nigeria, stated that the transaction establishes a solid foundation for the enterprise under incoming management, as reported by Mobility Plaza.
Fuel exports accounted for 85.9 percent of merchandise exports in Nigeria in 2025, according to World Bank figures. Major portfolio adjustments by international operators highlight an ongoing shift in how energy assets are managed locally.
What comes next
The transaction remains subject to regulatory clearance. Until the process concludes, operations will proceed without interruption, and the company will continue normal service delivery to its customer base.
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.
