Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, marking its planned exit from the country’s domestic gas distribution business after more than 25 years of operations.
Shell Petroleum B.V. announced the agreement on Tuesday, 13 October 2026, confirming that the transaction would transfer its gas distribution business in Nigeria to the indigenous energy firm. However, the sale remains subject to regulatory approvals and other conditions.
The agreement covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
Commenting on the development, Elohor Aiboni, Shell’s country chair in Nigeria, said the company had supplied industrial and commercial customers for more than 25 years, supported by the commitment and expertise of its workforce.
Aiboni expressed confidence that the change in ownership would create opportunities for the business to develop further, while reiterating Shell’s commitment to its strategic deepwater and integrated gas operations in Nigeria.
According to Shell, the proposed sale forms part of its broader strategy to simplify its business portfolio and concentrate investments on areas where it has competitive strengths.
The company intends to maintain its focus on deepwater oil operations and integrated gas projects, including its interest in Nigeria LNG Limited. The transaction, therefore, does not represent Shell’s complete withdrawal from Nigeria’s oil and gas industry.
Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers through a pipeline network spanning approximately 170 kilometres across Ogun, Abia and Rivers states. The business serves more than 130 connected customers.
Its operations are focused on domestic gas distribution rather than upstream gas production, liquefied natural gas (LNG) operations or international gas trading.
Vaaris Energy Limited, the proposed buyer, is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
The financial terms of the agreement have not been disclosed by the companies.
Until the transaction is completed, Shell Nigeria Gas Group will remain under Shell’s ownership and continue serving its customers and operating as usual.
The proposed acquisition represents another development in the changing ownership structure of Nigeria’s energy industry, as international oil companies reassess their portfolios and local firms seek greater participation in the sector.
The next stage will depend on the necessary regulatory approvals, after which Vaaris Energy is expected to assume ownership of the domestic gas distribution business.
