By Chibuzor Alli
Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy firm Vaaris Energy Limited, marking another shift in the international oil major’s business portfolio in Nigeria.
The deal will transfer ownership of a domestic gas distribution business that supplies more than 130 industrial and commercial customers, although the transaction is still subject to regulatory conditions and approvals.
Shell Petroleum B.V. announced the agreement in a statement made available to The PUNCH on Tuesday, explaining that the sale aligns with its strategy to simplify its portfolio and concentrate investment on areas where it has competitive strengths.
The transaction covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Why Shell Is Selling Its Nigerian Gas Business
Shell’s decision reflects its intention to focus on selected areas of Nigeria’s energy industry rather than maintain its interest across every segment of the gas value chain.
The company’s Country Chair in Nigeria, Elohor Aiboni, said Shell Nigeria Gas had served industrial and commercial customers for more than 25 years, crediting its workforce for supporting the business.
“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,” Aiboni said.
The company added that its future priorities in Nigeria would remain deepwater operations and integrated gas, including its interest in Nigeria LNG.
Vaaris Energy Takes Over a Key Domestic Gas Network
For Vaaris Energy, the acquisition offers an opportunity to expand its position in Nigeria’s domestic gas distribution market.
Established in 1998, Shell Nigeria Gas Limited operates approximately 170 kilometres of gas pipeline infrastructure across Ogun, Abia and Rivers states.
Its network supplies natural gas to more than 130 connected commercial and industrial customers, making it an important link between gas resources and businesses that rely on the fuel for their operations.
Vaaris Energy is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
The acquisition will place the domestic distribution business under Nigerian ownership once the transaction receives the necessary approvals and is completed.
What the Deal Means for Shell’s Nigerian Operations
The planned sale does not represent Shell’s complete withdrawal from Nigeria’s energy sector.
Instead, the company said it would continue concentrating on deepwater assets and integrated gas operations, including its participation in Nigeria LNG.
Shell Nigeria Gas also occupies a distinct position within the gas industry. Unlike businesses involved in upstream production, liquefied natural gas or international gas trading, the company focuses on distributing natural gas to domestic commercial and industrial users.
This distinction means the transaction concerns Shell’s gas distribution operations rather than its entire Nigerian gas portfolio.
Gas Customers to Continue Operations During Transition
Shell said Shell Nigeria Gas Group would remain part of its business until the transaction is completed.
During this period, the company will continue serving customers and operating as usual, with the sale remaining subject to applicable regulatory conditions and approvals.
The next major step will be the completion of the transaction, which will determine when Vaaris Energy formally assumes ownership of the business.
The deal places the spotlight on Nigeria’s domestic gas distribution market, where pipeline infrastructure and reliable supply are important to industrial activity, commercial operations and the wider push to expand natural gas use across the economy.
Leave a comment