Shell Petroleum B.V. has signed an agreement to sell its entire interest in the Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, marking a change in ownership for its domestic gas distribution business.
The announcement, made on Tuesday, October 13, 2026, covers Shell’s gas distribution operations serving industrial and commercial customers across Nigeria.
Shell said the business had served customers in the country for more than 25 years, supported by the expertise and commitment of its workforce.
“We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership,” the company said, adding that its focus in Nigeria would remain on strategic deepwater and integrated gas operations.
Gas infrastructure and customers
Shell Nigeria Gas Limited was established in 1998. The company operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states, supplying natural gas to more than 130 connected commercial and industrial customers.
The business focuses on domestic gas distribution and does not operate in upstream gas production, liquefied natural gas (LNG) or international gas trading.
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.
Sale subject to approvals
The proposed sale remains subject to regulatory conditions and the necessary approvals. Until the transaction is completed, Shell Nigeria Gas Group will remain part of Shell and continue operating as usual, including serving its existing customers.
Vaaris Energy Limited is a Nigerian company with interests across the oil and gas value chain and an existing operational presence in the country. Further details about its plans for the business following completion have not been announced.
Shell maintains focus on deepwater and integrated gas
Shell said the transaction aligns with its strategy of simplifying its portfolio and concentrating investment on areas where it has competitive strengths.
In Nigeria, the company intends to maintain its focus on deepwater oil and gas operations and integrated gas activities, including its interest in Nigeria LNG.
The proposed sale marks another adjustment to Shell’s Nigerian portfolio, while its remaining deepwater and integrated gas businesses continue to form part of its operations in the country.
The completion of the transaction will depend on the required regulatory approvals.
Source: Shell’s announcement, as reported by Nigerian and international energy news outlets.
