LAGOS, October 14, 2026 — British energy giant Shell has signed an agreement to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited as part of efforts to streamline its business operations and concentrate investments on strategic areas.
The agreement, announced on Tuesday, October 13, covers Shell’s domestic gas distribution business in Nigeria. The financial terms of the transaction were not disclosed.
Shell said the proposed sale would provide an opportunity for the gas distribution business to develop further under new ownership while allowing the company to concentrate on its preferred investments in deepwater operations and integrated gas projects.
Elohor Aiboni, Shell’s country chair in Nigeria, said the company had served industrial and commercial customers in the country for more than 25 years.
She expressed confidence that the agreement would provide a stronger platform for the business’s next phase of development under Vaaris Energy.
According to Shell, the transaction remains subject to regulatory conditions and approvals. Until the deal is completed, Shell Nigeria Gas Group will remain part of Shell and continue operating as usual.
Details of the Transaction
The proposed sale includes Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Shell Nigeria Gas was established in 1998 to supply natural gas to industrial and commercial customers across Nigeria.
The company operates approximately 170 kilometres of pipeline infrastructure in Ogun, Abia and Rivers states and serves more than 130 connected customers.
Its operations focus on domestic gas distribution rather than upstream gas production, liquefied natural gas production or international gas trading.
The company provides gas supply infrastructure that supports industrial and commercial activities, including businesses that rely on natural gas for their operations.
The companies have not disclosed the purchase price or the full financial arrangements associated with the agreement.
Why Shell Is Selling the Business
The planned sale forms part of Shell’s wider strategy to simplify its global portfolio and focus capital on businesses where it believes it has competitive strengths.
In Nigeria, the company intends to maintain its focus on deepwater oil and gas operations and integrated gas projects, including its interest in Nigeria LNG.
Shell has been reviewing its assets in several markets as it seeks to concentrate investment on projects that align with its long-term business strategy.
The proposed divestment of its domestic gas distribution business does not mean Shell is withdrawing entirely from Nigeria’s energy sector.
Instead, the company intends to retain its interests in selected oil and gas activities while transferring the distribution business to a new owner, subject to the required approvals.
Vaaris Energy Takes on a Domestic Gas Distribution Network
Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
The acquisition would give the company ownership of an established gas distribution platform, including pipelines and a customer network serving industrial and commercial businesses.
The transaction could provide Vaaris with an opportunity to expand its activities in Nigeria’s domestic gas market, although the companies have not publicly disclosed specific expansion plans tied to the acquisition.
The completion of the transaction will depend on the satisfaction of regulatory requirements and other applicable conditions.
Until then, Shell Nigeria Gas will continue serving its existing customers under the current arrangement.
What the Sale Means for Nigeria
The proposed transaction comes as Nigeria seeks to increase the use of natural gas for industrial development, electricity generation and other economic activities.
A reliable domestic gas distribution network can support businesses that require consistent energy supplies for manufacturing and commercial operations.
The transfer of ownership could create opportunities for further investment in the network, depending on the new owner’s plans and the outcome of the regulatory process.
However, the announcement alone does not establish whether gas prices, supply arrangements or employment conditions will change following completion.
Customers and other stakeholders will therefore be watching for further information about Vaaris Energy’s plans for the business.
The transaction also reflects continuing changes in Nigeria’s oil and gas industry as international energy companies review their assets and Nigerian firms seek larger roles in domestic energy infrastructure.
Conclusion
Shell’s agreement to sell its Nigerian domestic gas distribution business to Vaaris Energy represents a planned change in ownership of an established energy infrastructure company.
While Shell intends to focus on deepwater and integrated gas operations, Vaaris Energy would gain control of a business serving more than 130 industrial and commercial customers through a pipeline network spanning three states.
The deal remains subject to regulatory approvals, and the business will continue operating under Shell until the transaction is completed.
The financial terms of the sale have not been disclosed.
