Just In: Shell Exits Nigeria’s Gas Distribution Business, Sells Full Stake to Vaaris Energy
Shell Petroleum B.V. has signed an agreement to sell its entire interest in the Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, marking its exit from Nigeria’s domestic gas distribution business.
In a statement on Tuesday, Shell said the transaction would transfer its domestic gas distribution operations in Nigeria to Vaaris Energy, subject to the fulfilment of regulatory conditions and necessary approvals.
The deal covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in SNG Limited.
Speaking on the transaction, Shell’s Country Chair in Nigeria, Elohor Aiboni, said Shell Nigeria Gas had served industrial and commercial customers in the country for more than 25 years, supported by the commitment and expertise of its workforce.
“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.
According to the statement, the SNG Group will continue to operate as usual and serve its customers until the transaction is completed.
Shell said the sale aligns with its strategy to simplify its portfolio and concentrate investments in areas where it has competitive strengths.
The company explained that its continued focus on deepwater and integrated gas operations in Nigeria, including its interest in Nigeria LNG, reflects this strategy.
It added that Shell Nigeria Gas does not engage in upstream gas production, liquefied natural gas (LNG) operations or international gas trading.
Established in 1998, SNG supplies natural gas to industrial and commercial customers and operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.
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.