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Shell is selling its entire interest in Shell Nigeria Gas Group to Vaaris Energy, ending more than 25 years of direct ownership of its domestic gas distribution business.
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The sale extends Shell’s Nigeria divestment drive after its 2025 exit from onshore oil production through the disposal of SPDC to Renaissance.
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SNG supplies more than 130 industrial and commercial customers through about 170 kilometres of gas pipelines across Ogun, Abia and Rivers states.
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Shell is not exiting Nigeria, but is concentrating its remaining investments on deepwater oil and gas and integrated gas, including its 25.6 percent stake in Nigeria LNG.
October 14, (THEWILL) – Shell has taken another major step in the restructuring of its decades-old Nigerian operations, agreeing to sell its entire interest in its domestic gas distribution business, Shell Nigeria Gas Group (SNG), to indigenous energy company, Vaaris Energy Limited, more than 25 years after establishing the business.
The transaction pushes Shell’s divestment in Nigeria beyond its historic withdrawal from onshore oil production and into domestic gas distribution, as the British energy giant progressively narrows its footprint to deepwater and integrated gas assets.
Shell Petroleum B.V. announced the agreement on Tuesday, saying the transaction would transfer ownership of its domestic gas distribution operation to Vaaris Energy, subject to regulatory conditions and approvals.
Although, the financial terms of the deal were not disclosed, THEWILL gathered that the sale covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in SNG Limited.
Established in 1998, SNG has grown into a major supplier of natural gas to industrial and commercial customers, operating about 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.
The network currently serves more than 130 industrial and commercial customers, giving Vaaris an established downstream gas distribution operation if regulators approve the acquisition.
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Shell said SNG would remain part of the group pending completion of the transaction and would continue serving customers without disruption.
However, Shell is not pulling out of Nigeria. The company has repeatedly said its strategy is to simplify its Nigerian portfolio while directing investment towards areas where it believes it has stronger competitive advantages — particularly deepwater and integrated gas.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the company believed the change of ownership would provide a stronger platform for SNG’s next phase.
“Shell Nigeria Gas has served industrial and commercial customers in Nigeria for more than 25 years, supported by the commitment and expertise of its people.
“We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership. Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria,” Aiboni said.
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