Shell exits Nigeria gas distribution business in deal with Vaaris Energy

Shell Petroleum B.V. has signed an agreement to sell its entire interest in the Shell Nigeria Gas (SNG) Group to Vaaris Energy Limited, a Nigerian energy company, as part of efforts to streamline its portfolio and focus on strategic investments.

Shell announced the transaction in a statement on Tuesday, explaining that the deal would transfer its domestic gas distribution business in Nigeria to Vaaris Energy.

The proposed sale, which remains subject to regulatory conditions and approvals, covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in SNG Limited.

Speaking on the agreement, Shell’s Country Chair in Nigeria, Elohor Aiboni, said Shell Nigeria Gas had served industrial and commercial customers in the country for more than 25 years.

“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 expressed confidence that the transaction would provide a stronger foundation for the business under its new ownership.

“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,” she added.

Shell said the SNG Group would continue operating normally and serving its customers until the transaction is completed.

The company explained that the sale aligns with its strategy to simplify its business portfolio and concentrate investment in areas where it has competitive strengths.

Its continued focus on deepwater operations and integrated gas projects in Nigeria, including its interest in Nigeria LNG Limited, reflects that strategy.

Shell also clarified that SNG does not participate in upstream gas production, liquefied natural gas (LNG) operations or international gas trading.

Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers through approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.

Meanwhile, 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 completion of the transaction will depend on the fulfilment of the required regulatory conditions and approvals.

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