British energy giant Shell moves to exit Nigeria’s domestic gas distribution business after more than 25 years, selling network serving over 130 businesses

Shell has agreed to sell its Nigerian domestic gas-distribution business to Vaaris Energy, advancing a restructuring that is concentrating the international energy company’s investment on deepwater production and integrated gas.

• Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to Vaaris Energy.
• The business supplies more than 130 industrial and commercial customers across three Nigerian states.
• Completion requires regulatory approvals, and the transaction value has not been disclosed.
• Shell will retain its focus on Nigerian deepwater production and integrated gas, including Nigeria LNG.

The agreement covers Shell Petroleum B.V.’s entire interest in Shell Nigeria Gas Group, whose pipeline network supplies industrial and commercial customers.

Announced on 13 October, the sale involves approximately 170 kilometres of pipelines across Ogun, Abia and Rivers states, serving more than 130 connected businesses.

Completion remains subject to regulatory conditions and approvals. Until then, the business will remain part of Shell and continue operating normally.

A change of ownership for industrial gas supply

Established in 1998, Shell Nigeria Gas distributes natural gas to commercial and industrial users. Its activities exclude upstream gas production, LNG operations and international gas trading.

The transaction also includes Shell Nigeria Gas Holding B.V., which owns all but one of the shares in the Nigerian operating company.

Shell described Vaaris Energy as a Nigerian company with interests across the oil and gas industry and an existing operational presence in the country. The announcement did not detail the buyer’s investment plans for the distribution network.

“Shell Nigeria Gas has served industrial and commercial customers in Nigeria for more than 25 years,” Shell’s country chair, Elohor Aiboni, said.

For customers, the immediate issue is continuity of supply during the ownership transition. Shell says services will continue as usual while approvals are pursued; no changes to customer contracts or tariffs were announced.

Separate from Shell’s earlier onshore sale

The agreement follows Shell’s disposal of its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria, to Renaissance.

That transaction was completed on 13 March 2025, transferring control of the subsidiary and its 30% interest in the associated joint venture.

Shell Nigeria Gas was explicitly excluded from that earlier sale, alongside Shell’s deepwater company and its 25.6% interest in Nigeria LNG.

Offshore investment continues

Shell’s Nigerian restructuring combines asset sales with investment in selected offshore operations.

In November 2025, its subsidiary SNEPCo completed an acquisition that increased its interest in the production-sharing contract containing the Bonga field from 55% to 65%.

Shell also approved the Bonga North development in December 2024. The project is designed to connect new production to existing offshore infrastructure, supporting the company’s longer-term Nigerian operations.

The gas-distribution sale would narrow Shell’s direct involvement in supplying Nigerian factories and commercial customers. Its retained offshore and LNG interests show that the agreement represents another portfolio change, rather than a complete withdrawal from Nigeria.