Shell Sells Nigerian Gas Distribution Business to Vaaris Energy
The company disclosed the transaction in a statement, saying the deal was subject to regulatory conditions and approvals.
According to Shell, the sale aligns with its strategy to simplify its portfolio and concentrate investments on areas where it has competitive strengths.
Shell’s Country Chair in Nigeria, Elohor Aiboni, said Shell Nigeria Gas had served industrial and commercial customers across the country for more than 25 years.
“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,” Aiboni said.
She added that the agreement would provide a stronger foundation for the company’s future under new ownership.
“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,” she stated.
Established in 1998, Shell Nigeria Gas Limited operates approximately 170 kilometres of gas pipeline infrastructure across Ogun, Abia and Rivers states.
The company supplies natural gas to more than 130 connected commercial and industrial customers.
The transaction also covers Shell Nigeria Gas Holding B.V., established in 2019, which owns all but one of the shares in Shell Nigeria Gas Limited.
Shell clarified that its domestic gas distribution business does not engage in upstream gas production, liquefied natural gas operations or international gas trading.
Until the transaction is completed, Shell Nigeria Gas Group will remain part of Shell, continuing its operations and serving customers as usual.
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.
Following the sale, Shell said it would maintain its focus on deepwater operations and integrated gas in Nigeria, including its interest in Nigeria LNG.
