Shell has entered into an agreement to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, marking a shift in its domestic gas distribution business.
The agreement will transfer Shell’s interest in the business to the local firm, subject to regulatory approvals and other conditions.
Shell Nigeria Gas supplies natural gas to industrial and commercial customers across parts of the country.
Speaking on the transaction, Shell’s Country Chair in Nigeria, Elohor Aiboni, said the business had served customers for more than 25 years.
“We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership,” she said.
Aiboni added that Shell would continue to focus on strategic deepwater and integrated gas operations in Nigeria.
The company said the sale aligns with its strategy to simplify its portfolio and concentrate investments in areas where it has competitive strengths.
Shell Nigeria Gas does not engage in upstream gas production, liquefied natural gas production or international gas trading.
Established in 1998, the business operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.
It supplies gas to businesses in the industrial and commercial sectors.
Vaaris Energy, the prospective buyer, has interests across the oil and gas value chain and an existing operational presence in Nigeria.
Shell said Shell Nigeria Gas Group would continue operating normally and serving customers until the transaction is completed.
The deal does not represent Shell’s complete exit from Nigeria’s gas industry.
The company said it would retain its focus on integrated gas operations, including its interest in Nigeria LNG, as well as strategic deepwater activities.
Completion of the transaction will depend on the necessary regulatory approvals and satisfaction of other conditions.
