Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, marking a significant change in the international oil major’s domestic gas distribution operations as it sharpens its investment focus in Nigeria.
The proposed transaction, announced on Tuesday, October 13, 2026, will transfer ownership of Shell Nigeria Gas Group to Vaaris Energy, subject to regulatory conditions and the necessary approvals.
Shell said the agreement would provide its domestic gas distribution business with a stronger platform for future growth under new ownership, while allowing the company to concentrate on strategic areas where it has competitive strengths.
The development comes after more than 25 years of Shell Nigeria Gas supplying natural gas to industrial and commercial customers across parts of the country.
Shell’s decision to sell its domestic gas distribution business is part of a broader strategy to simplify its portfolio and focus investment on selected areas of the energy industry.
Elohor Aiboni, Shell’s Country Chair in Nigeria, said the transaction would create an opportunity for the business to enter a new phase under Vaaris Energy’s ownership.
“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,” Aiboni said.
She added that Shell believed the agreement would provide a stronger platform for the business’s next chapter.
According to the company, its priorities in Nigeria will continue to include deepwater oil production and Integrated Gas operations, including its interest in Nigeria LNG.
The proposed sale, however, does not cover Shell’s upstream gas production, liquefied natural gas (LNG) operations or international gas trading businesses.
Established in 1998, Shell Nigeria Gas has developed a domestic gas distribution network serving industrial and commercial customers.
The company operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states, supplying natural gas to more than 130 connected customers.
Its operations support businesses that depend on natural gas for industrial processes, commercial activities and energy requirements.
The transaction also includes Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
The sale will therefore transfer Shell’s entire interest in the domestic gas distribution group, subject to the completion of the required regulatory processes.
Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
The acquisition would place the Shell Nigeria Gas distribution business under local ownership, potentially creating opportunities for the new owner to expand its operations and strengthen its position in Nigeria’s domestic gas market.
However, the transaction’s eventual impact will depend on the buyer’s investment plans, operational strategy and ability to maintain and develop the existing distribution network.
For industrial and commercial customers, continuity of supply will remain important as the ownership transition progresses.
Shell has confirmed that Shell Nigeria Gas Group will remain part of its business until the transaction is completed. During this period, the company will continue serving its customers and operating as usual.
Although Shell is selling its domestic gas distribution business, the agreement does not represent a complete withdrawal from Nigeria’s gas industry.
The company said it would maintain its focus on strategic deepwater and Integrated Gas positions, including its interest in Nigeria LNG.
The distinction is important because domestic gas distribution, upstream gas production and LNG operations are separate parts of the energy value chain.
While the proposed sale changes Shell’s ownership position in the domestic distribution segment, its retained interests will continue to provide a presence in other areas of Nigeria’s oil and gas industry.
The transaction remains subject to regulatory conditions and approvals. Until completion, Shell Nigeria Gas Group will continue operating under Shell’s ownership.
