Shell to Exit Nigeria’s Domestic Gas Distribution Business as Vaaris Energy Takes Over

British energy giant Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, marking its planned exit from Nigeria’s domestic gas distribution business after more than 25 years of operations.

The deal, announced on Tuesday, October 13, 2026, forms part of Shell’s strategy to simplify its business portfolio and concentrate investments on areas where it believes it has stronger competitive advantages. The financial terms of the transaction have not been disclosed, and the sale remains subject to regulatory conditions and approvals.

Shell Nigeria Gas, established in 1998, supplies natural gas to industrial and commercial customers across Nigeria. The company operates approximately 170 kilometres of gas pipeline infrastructure across Ogun, Abia and Rivers states, serving more than 130 connected commercial and industrial customers.

The business focuses on domestic gas distribution and does not undertake upstream gas production, liquefied natural gas operations or international gas trading. The transaction includes Shell Nigeria Gas Holding B.V, which holds nearly all the shares in Shell Nigeria Gas Limited.

Shell’s Country Chair in Nigeria, Elohor Aiboni, said the company had served industrial and commercial customers for more than two decades and expressed confidence that the agreement would provide a stronger platform for the business under its new ownership.

Vaaris Energy is a Nigerian owned energy company with interests across the oil and gas value chain and an existing operational presence in the country. The acquisition will give it control of a gas distribution network that supplies businesses relying on natural gas for industrial processes and commercial operations.

The sale does not mean Shell is withdrawing completely from Nigeria’s energy sector. The company says it will continue to focus on strategic deepwater operations and integrated gas projects, including its interest in Nigeria LNG.

The transaction also reflects the continuing reshaping of Shell’s Nigerian portfolio, as the international energy company concentrates on selected operations while transferring other assets to local businesses.

Until the sale receives the necessary approvals and is completed, Shell Nigeria Gas Group will remain part of Shell and continue serving its customers as usual.

The change in ownership could create new opportunities for Vaaris Energy to expand domestic gas distribution, although the longer term impact on customers, investment and Nigeria’s gas market will depend on how the transition is managed.