afripost.ng · 10/13/2026 · 0 views

BREAKING: Shell sells Nigeria gas business after 89 years

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Shell has agreed to sell its domestic gas distribution business in Nigeria to Vaaris Energy Limited, marking another change in its operations nearly 89 years after the energy giant began operating in the country.

The deal will transfer Shell Nigeria Gas (SNG) Group to the Nigerian energy company, subject to regulatory approvals and other conditions. However, Shell will retain its interests in deepwater oil production and integrated gas operations in Nigeria.

The latest transaction comes as Shell continues to reshape its Nigerian portfolio, following its sale of an onshore oil and gas subsidiary in 2025.

In a statement on Tuesday, Shell said the agreement covers Shell Nigeria Gas Holding B.V., established in 2019, which owns nearly all the shares in SNG Limited.

The company explained that the sale aligns with its strategy to simplify its business portfolio and focus investment on areas where it has competitive strengths.

Speaking on the development, Elohor Aiboni, Shell’s country chair in Nigeria, said the gas distribution business had served industrial and commercial customers for more than 25 years.

Aiboni expressed confidence that the change in ownership would create a stronger platform for the business to pursue its next phase of growth.

She added that Shell would continue to concentrate on strategic deepwater and integrated gas projects in Nigeria.

Meanwhile, Shell Nigeria Gas will continue operating normally and supplying its customers until the transaction is completed. The company has not announced any immediate disruption to its services.

Established in 1998, Shell Nigeria Gas distributes natural gas to industrial and commercial customers. It operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.

The business does not engage in upstream gas production, liquefied natural gas processing or international gas trading. Instead, it focuses on delivering natural gas to businesses within Nigeria.

For Vaaris Energy, the acquisition offers an opportunity to strengthen its position in the country’s domestic gas market. The Nigerian company already has an operational presence in the energy sector, with interests spanning different segments of the oil and gas value chain.

Shell began operating in Nigeria in 1937 and has maintained a presence in the country’s petroleum industry for nearly nine decades.

In March 2025, the company completed the sale of its onshore subsidiary, the Shell Petroleum Development Company of Nigeria, to Renaissance Africa Energy Company.

Despite these divestments, Shell is not leaving Nigeria entirely. It plans to retain its interests in deepwater oil production and integrated gas operations, including its investment in Nigeria LNG.

The proposed sale of Shell Nigeria Gas therefore represents another step in the company’s restructuring, as it transfers selected businesses to new owners while maintaining operations in areas it considers strategically important.