Shell Agrees to Sell Nigerian Gas Distribution Business to Vaaris Energy

Shell has agreed to sell its Nigerian domestic gas distribution business to indigenous energy company Vaaris Energy Limited in a transaction that could change ownership of a key part of the country’s gas supply network.

The proposed deal covers Shell Nigeria Gas Group, which operates about 170 kilometres of gas pipelines across Rivers, Abia and Ogun states. The business supplies natural gas to more than 130 industrial and commercial customers.

Shell Nigeria Gas distributes gas to businesses but does not engage in upstream gas production or liquefied natural gas (LNG) operations. Its network supports industrial and commercial users that rely on natural gas for their operations.

Shell said the proposed sale aligns with its strategy to concentrate on deepwater and integrated gas investments in Nigeria. The transaction forms part of the company’s approach to its portfolio of energy assets in the country.

The agreement is particularly significant for Rivers State, where Shell Nigeria Gas operates part of its pipeline network and serves customers. A change in ownership could bring a new operator into an established segment of the state’s gas distribution infrastructure.

However, the sale is not yet complete. The transaction remains subject to regulatory approvals, and Shell Nigeria Gas is expected to continue operating as usual until the deal is finalised.

The financial terms of the agreement have not been disclosed. Details of the expected completion date and any changes to the business’s operations following the sale were not provided in the information available.

The transaction puts the spotlight on the role of indigenous energy companies in Nigeria’s domestic gas market and the future ownership of infrastructure serving industrial and commercial customers.

OtownGist will continue to follow developments as the proposed acquisition progresses through the regulatory process.