Shell Petroleum, a subsidiary of the British energy group Shell, has signed an agreement to divest its entire stake in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company. Announced on 13 October 2026, the transaction focuses exclusively on this subsidiary's natural gas distribution operations for industrial and commercial clients in Nigeria.
It does not concern the group's gas production activities or its operations in liquefied natural gas (GNL). See also- Nigeria: Shell considers an investment of 20 billion USD in the Bonga offshore project.
Established in 1998, Shell Nigeria Gas Limited provides natural gas distribution to industrial and commercial enterprises in Nigeria. For more than 25 years, the company has operated approximately 170 kilometers of pipelines in the states of Ogun, Abia, and Rivers, through which it supplies more than 130 clients connected to its network.
It is this distribution business, held by Shell through its holding structure, that Vaaris Energy is set to acquire upon completion of the transaction. For Shell, this divestment aligns with a desire to refocus its investments on its core activities in Nigeria, notably deepwater oil projects and integrated gas.
In Nigeria, it intends to maintain its positions in deepwater oil projects and integrated gas, including its stake in Nigeria LNG, which specializes in the production and export of liquefied natural gas. The sale of its distribution subsidiary does not therefore constitute a general withdrawal from the Nigerian gas market, but rather a refocusing on other segments of the value chain.
See also- Nigeria: Shell approves a new gas investment of 2 billion dollars. Vaaris Energy Limited, which already has operations in the Nigerian oil and gas sector, is thus establishing a position in an existing distribution network and an established customer base.
The acquisition could strengthen its presence in the domestic natural gas market, although the company's investment plans and development prospects post-acquisition were not specified in the announcement. The value of the transaction was not disclosed.
Its completion remains subject to regulatory conditions and required approvals. Until the sale is finalized, Shell Nigeria Gas Group remains an entity of the Shell group and will continue to serve its clients and operate its facilities under normal conditions.
Fanuelle YAO Published on 14/10/26 14:13 The Editorial Staff