Shell Divests Domestic Gas Network to Vaaris Energy

Shell is set to exit Nigeria’s domestic gas distribution sector by selling its full domestic gas distribution network and assets, held via Shell Nigeria Gas Holding B.V., to Vaaris Energy. The transaction is subject to customary regulatory approvals.

Elohor Aiboni, Shell’s Country Chair in Nigeria, stated that Shell Nigeria Gas (SNG) has played a crucial role in Nigeria’s industrial growth for over 25 years. Aiboni expressed confidence that the agreement would provide a stronger platform for SNG under new ownership.

Shell will continue to operate SNG normally until the transaction is finalized. This divestment is part of a broader trend where international oil companies are moving away from onshore assets to focus on capital-intensive offshore deepwater projects.

Established in 1998, SNG serves industrial and commercial customers and manages over 170 kilometers of pipeline infrastructure in Ogun, Abia, and Rivers states. Vaaris Energy is a growing Nigerian energy operator with interests across the domestic oil and gas value chain.