Shell has announced plans to divest its entire interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian company, marking its exit from the country’s domestic gas distribution market after more than 25 years of operations.
The proposed sale forms part of Shell’s strategic repositioning in Nigeria, with the energy giant seeking to concentrate its operations on deepwater exploration and production, as well as integrated gas businesses.
Shell Petroleum B.V. disclosed the transaction in a statement on Tuesday, confirming that the agreement covers its domestic gas distribution business in Nigeria.
For more than two decades, Shell Nigeria Gas has supplied natural gas to industrial and commercial customers, supporting businesses that depend on gas for their operations and energy needs.
The company acknowledged the contributions of its employees, attributing the business’s operations and longevity to their dedication and expertise.
Shell expressed confidence that the change in ownership would provide the gas distribution business with a stronger foundation to pursue its next phase of development, adding that the new ownership structure would create a better platform for future growth.
Despite the planned divestment, Shell maintained that Nigeria remained strategically important to its wider business portfolio, particularly its deepwater operations and integrated gas interests.
The transaction underscores a shift in Shell’s involvement in Nigeria’s domestic gas distribution sector, even as the company retains a significant focus on other segments of the country’s energy industry.
The sale will transfer the domestic gas distribution business to Vaaris Energy Limited, although Shell did not disclose the financial terms of the agreement or provide a timeline for the completion of the transaction.
The planned exit comes amid continuing efforts to expand gas utilisation in Nigeria, where natural gas is viewed as a critical resource for industrial development, electricity generation and the country’s broader energy transition ambitions.
