Shell has signed an agreement to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, marking a major ownership transition in the country’s domestic gas distribution market after more than 25 years of operations. Announced on October 13, 2026, the transaction forms part of Shell’s strategy to simplify its global portfolio and concentrate investment on areas where it sees stronger competitive advantages. According to Reuters, the financial terms of the deal have not been disclosed, and completion remains subject to regulatory conditions and approvals. Shell Nigeria Gas supplies natural gas to industrial and commercial customers, making the transaction significant for businesses that depend on gas for manufacturing and other operations.
Established in 1998, Shell Nigeria Gas operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states, serving more than 130 connected industrial and commercial customers. According to industry publication Gas Processing & LNG, the business provides domestic gas distribution services but does not include Shell’s upstream gas production, liquefied natural gas operations or international gas trading. Shell’s Country Chair in Nigeria, Elohor Aiboni, said the business had served industrial and commercial customers for more than 25 years and described the agreement as an opportunity to provide a stronger platform for its next phase under new ownership. Until the transaction receives the necessary approvals and is completed, the business will remain part of Shell and continue serving customers as usual.
For Vaaris Energy, the acquisition offers an opportunity to expand its footprint in Nigeria’s gas value chain by taking over an established distribution network and its existing industrial customer base. The transaction also comes as Nigeria seeks to increase domestic gas utilisation to support industrialisation, electricity generation and broader economic growth. Shell, meanwhile, has emphasised that the sale does not represent a complete withdrawal from Nigeria’s energy sector. The company intends to maintain its focus on deepwater oil production and integrated gas operations, including its interest in Nigeria LNG. The deal’s eventual impact will depend on regulatory approval, continuity of supply and Vaaris Energy’s ability to maintain and potentially expand the infrastructure serving Nigerian businesses.
