Shell sells Nigeria gas unit SNG to Vaaris Energy pending regulatory approval
Shell Plc has agreed to sell its entire interest in Shell Nigeria Gas (SNG) to Nigerian energy firm Vaaris Energy, the company announced on Tuesday. The transaction covers Shell Nigeria Gas Holding B.V., set up in 2019, which owns all but one share of SNG Limited. Financial terms were not disclosed, and the deal remains subject to regulatory approvals.
SNG, established in 1998, supplies natural gas to industrial and commercial customers and operates about 170 kilometres of pipeline across Ogun, Abia and Rivers states. Vaaris Energy is a privately held Nigerian company with operations across the oil and gas value chain.
Shell said the sale aligns with CEO Wael Sawan’s strategy to streamline the portfolio and focus on investments that deliver stronger returns, especially in deepwater and integrated gas. Shell's Country Chair in Nigeria, Elohor Aiboni, noted that SNG has served customers for over 25 years and praised its workforce, adding that the agreement offers a stronger platform for the business under new ownership.
Until the transaction closes, SNG will continue operating as usual and serving its customers. Shell also raised its third-quarter integrated gas production forecast to 740,000–780,000 barrels of oil equivalent per day, up from the earlier 570,000–630,000 boepd range, and noted that incentives approved by President Bola Tinubu for the Bonga South-West deep-offshore project remain in place to attract fresh investment.
What does this mean for Nigerians? Industrial consumers in the three states should watch for any changes in gas supply or pricing once Vaaris Energy takes over, while workers and local economies await details on how the new owner will manage the asset.