Shell Shuts Down, Transfers Its Gas Distribution Interest In Nigeria
Shell Petroleum B.V. has announced the sale of its full interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian company.
The firm said that selling its Nigerian domestic gas-distribution business to Vaaris Energy was advancing a restructuring, concentrating the international energy company’s investment on deepwater production and integrated gas.
In a statement on Tuesday, the company said the deal covered its domestic gas distribution business in the country.
“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,” the company said.
The business supplies more than 130 industrial and commercial customers across three Nigerian states.
Completion requires regulatory approvals, and the transaction value has not been disclosed.
Shell will retain its focus on Nigerian deepwater production and integrated gas, including Nigeria LNG.
The agreement covers Shell Petroleum B.V.’s entire interest in Shell Nigeria Gas Group, whose pipeline network supplies industrial and commercial customers.
Announced on 13 October, the sale involves approximately 170 kilometres of pipelines across Ogun, Abia and Rivers states, serving more than 130 connected businesses.
Completion remains subject to regulatory conditions and approvals. Until then, the business will remain part of Shell and continue operating normally.
Established in 1998, Shell Nigeria Gas distributes natural gas to commercial and industrial users.
Its activities exclude upstream gas production, LNG operations and international gas trading.
The transaction also includes Shell Nigeria Gas Holding B.V., which owns all but one of the shares in the Nigerian operating company.
Shell described Vaaris Energy as a Nigerian company with interests across the oil and gas industry and an existing operational presence in the country. The announcement did not detail the buyer’s investment plans for the distribution network.
Elohor Aiboni, country Chairman of Shell Nigeria, said Shell Nigeria Gas had supplied industrial and commercial customers in the country for more than 25 years.
For customers, the immediate issue is continuity of supply during the ownership transition. Shell says services will continue as usual while approvals are pursued; no changes to customer contracts or tariffs were announced.
The agreement follows Shell’s disposal of its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria, to Renaissance.
That transaction was completed on 13 March 2025, transferring control of the subsidiary and its 30 percent interest in the associated joint venture.
Shell Nigeria Gas was explicitly excluded from that earlier sale, alongside Shell’s deepwater company and its 25.6 percent interest in Nigeria LNG.
Shell’s Nigerian restructuring combines asset sales with investment in selected offshore operations.
In November 2025, its subsidiary SNEPCo completed an acquisition that increased its interest in the production-sharing contract containing the Bonga field from 55 percent to 65 percent.
Shell also approved the Bonga North development in December 2024.
The project is designed to connect new production to existing offshore infrastructure, supporting the company’s longer-term Nigerian operations.
The gas-distribution sale would narrow Shell’s direct involvement in supplying Nigerian factories and commercial customers.
