Gas
Vaaris Energy agrees to acquire Shell Nigeria Gas
Shell has reached an agreement to sell its Nigerian industrial gas distribution subsidiary to local firm Vaaris Energy.
Key points
- Vaaris Energy will acquire around 170 kilometres of gas pipeline network.
- The transaction includes over 130 commercial and industrial customers across three states.
- Shell will retain its deepwater operations and its stake in Nigeria LNG.
What happened
Shell Petroleum B.V. signed an agreement on 13 October to divest its subsidiary, Shell Nigeria Gas, to Nigerian company Vaaris Energy, according to Energy News Network. The transaction encompasses approximately 170 kilometres of pipeline infrastructure operating across Ogun, Abia and Rivers states, alongside more than 130 connected corporate clients.
Financial terms of the agreement were not disclosed. The deal remains subject to regulatory approvals, and operations will continue under Shell until the transaction officially closes. The acquisition covers Shell Nigeria Gas Holding B.V., established in 2019 to hold the vast majority of shares in the distribution entity.
Why it matters
Incorporated in 1998, Shell Nigeria Gas focuses exclusively on supplying piped fuel directly to commercial factories and industrial facilities, operating entirely separately from upstream extraction and liquefied natural gas production.
Elohor Aiboni, Shell’s Country Chair in Nigeria, noted that the asset provided steady service for over two decades and stated that the arrangement offers an improved foundation for the enterprise under incoming proprietors. Energy News Network reported that the divestment aligns with Chief Executive Wael Sawan's ongoing efforts to streamline the company's global portfolio.
What comes next
Following completion of the sale, Shell will maintain its footprint in the country through remaining assets deemed strategic. These retained interests include deepwater projects and the corporation's shareholding in Nigeria LNG.
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.
