Gas
Vaaris acquires Shell Nigeria Gas after outbidding rivals
Vaaris Energy has secured an agreement to acquire Shell Nigeria Gas following a competitive bidding process.
Key points
- Vaaris Energy signs sale and purchase agreement for Shell Nigeria Gas.
- The acquisition includes roughly 150 kilometres of gas transmission and distribution networks.
- Shell Nigeria Gas supplies about 50 million standard cubic feet of gas daily to industrial customers.
What happened
According to reporting by Africa Oil+Gas Report, Vaaris Energy has won a six-month acquisition race to purchase the assets of Shell Nigeria Gas, the midstream and downstream subsidiary of Shell. Vaaris surpassed a competing consortium led by Newcross E&P Co, which had offered over $306 million for the business. Aradel Holdings had previously considered the acquisition but declined to overpay above a valuation slightly north of $300 million.
Asset overview
The acquired operations comprise a natural gas transmission and distribution network spanning approximately 150 kilometres. The infrastructure delivers processed gas to over 150 commercial and industrial customers across Ogun, Abia, and Rivers States in Nigeria.
Regulatory backdrop
The transaction comes as Nigeria prepares to expand its domestic gas network. The Midstream and Downstream Petroleum Regulatory Authority announced plans in early October 2026 to launch digital licensing rounds for gas distribution following a nationwide grid-mapping exercise. This initiative aims to foster an open-access market where infrastructure can be shared among operators.
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.
