Shell sells Nigeria gas business to Vaaris Energy, exits domestic distribution
Shell has agreed to sell its full interest in Shell Nigeria Gas Group to indigenous energy firm Vaaris Energy Limited, marking its exit from Nigeria's domestic gas distribution business after over 25 years of operation. The deal covers Shell Nigeria Gas Holding B.V., which operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states, serving more than 130 industrial and commercial customers.
Shell announced the transaction on October 8 as part of its strategy to simplify its portfolio and focus on areas of competitive strength, particularly Deepwater and Integrated Gas operations in Nigeria. The company emphasized that Shell Nigeria Gas will continue serving customers normally until regulatory approvals are obtained and the deal closes. Financial terms were not disclosed, and Vaaris Energy is described as a privately held Nigerian firm with interests across the oil and gas value chain.
This divestment aligns with Shell's global portfolio streamlining under CEO Wael Sawan, while the company maintains its commitment to Nigeria LNG and deepwater projects. With regulatory conditions still pending, what implications does this ownership shift have for local gas supply stability and opportunities for further indigenous participation in Nigeria's energy sector?