Shell agrees to transfer its Nigerian gas distribution arm to Vaaris Energy

Shell Plc announced on Tuesday that it has entered into an agreement to dispose of its full interest in the Shell Nigeria Gas (SNG) Group, the domestic gas distribution business operating in Nigeria. The deal will see the assets transferred to Vaaris Energy, a privately held Nigerian energy company with activities across the oil and gas value chain. The transaction remains subject to the usual regulatory conditions and approvals, and the financial terms have not been disclosed publicly.

According to the statements released by Shell, the sale includes Shell Nigeria Gas Holding B.V., a vehicle set up in 2019 that holds all but one of the shares in SNG Limited. The move aligns with the strategic direction set by Shell’s chief executive, Wael Sawan, to streamline the company’s portfolio and concentrate capital on areas that are expected to generate stronger returns, particularly within the oil and gas segment.

Shell’s country chair for Nigeria, Elohor Aiboni, highlighted that SNG has been supplying industrial and commercial customers for more than 25 years, supported by a skilled workforce. The group, founded in 1998, operates roughly 170 kilometres of pipeline infrastructure across the states of Ogun, Abia and Rivers, delivering natural gas to a range of commercial and industrial users. Shell indicated that SNG will continue to operate normally and serve its customers until the transaction is finalised.

Vaaris Energy, the buyer, is described as having an existing operational presence in Nigeria and interests that span the oil and gas value chain. The acquisition is expected to expand its footprint in the domestic gas market, although specific integration plans have not been detailed.

The sale forms part of Shell’s ongoing effort to manage its global energy portfolio and adjust its production outlook. In a related development, the company recently raised its third‑quarter integrated gas production forecast, reflecting a broader shift in its operational focus.

Both Shell and Vaaris Energy have indicated that the transaction will be completed in accordance with applicable regulations, and that the continuity of service for SNG’s customers will be maintained throughout the process.