Shell Agrees To Sell Shell Nigeria Gas To Vaaris Energy, Exits Domestic Gas Distribution

Shell Petroleum B.V. has signed an agreement to sell its full interest in the Shell Nigeria Gas Group to indigenous firm Vaaris Energy Limited. The deal marks Shell’s exit from domestic gas distribution in Nigeria.

The transaction is subject to regulatory conditions and approvals. It covers Shell Nigeria Gas Holding B.V., which was established in 2019 and holds all the shares, except one, in Shell Nigeria Gas Limited (SNG). Until completion, the Shell Nigeria Gas Group will remain part of Shell and will continue to serve its customers and operate as usual.

What Shell Is Selling

SNG was established in 1998. It supplies natural gas to industrial and commercial customers and operates around 170km of pipeline infrastructure across Ogun, Abia and Rivers States. It serves more than 130 connected customers. SNG does not operate in upstream gas production, liquefied natural gas (LNG), or international gas trading.

Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational footprint in the country.

Aiboni Speaks On The Sale

Shell’s Country Chair in Nigeria, Elohor Aiboni, said: “Shell Nigeria Gas has served industrial and commercial customers in Nigeria for more than 25 years, supported by the commitment and expertise of its people. We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership. Shell continues to focus on strategic deepwater and integrated gas positions in Nigeria.”

Why Shell Is Exiting

Shell said the sale is consistent with its strategy of simplifying its portfolio and concentrating investment in areas where it has competitive strengths. It noted that its continued focus on deepwater and integrated gas in Nigeria, including its interest in Nigeria LNG, exemplifies that strategy.

For SNG’s more than 130 connected customers, the company will continue to operate as usual until the transaction meets regulatory conditions and is completed.