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Shell Petroleum B.V. has reached an agreement to sell its entire stake in the Shell Nigeria Gas (SNG) Group to indigenous firm Vaaris Energy Limited, marking a major shift in the energy giant’s Nigerian operational footprint.
Under the terms of the transaction, which remains subject to customary regulatory approvals, Shell will transfer its full domestic gas distribution network and assets—held via Shell Nigeria Gas Holding B.V.—to Vaaris Energy.
The divestment aligns with Shell’s broader global strategy to streamline its portfolio, shed onshore and downstream operations, and double down on deepwater production alongside large-scale integrated gas projects, including its substantial stake in Nigeria LNG (NLNG).
Commenting on the deal, Elohor Aiboni, Shell’s Country Chair in Nigeria, noted that SNG has been an integral part of the nation’s industrial expansion for over two decades.
“Shell Nigeria Gas has served industrial and commercial customers in Nigeria for more than 25 years, supported by the commitment and expertise of its people,”
Aiboni said. “We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership. Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria.”
Shell clarified that SNG will continue operating normally and serving its customer base without interruption until the transaction fully closes.
This transaction is part of a wider trend across Nigeria’s energy landscape, where international oil companies (IOCs) are increasingly divesting from onshore assets, shallow-water blocks, and localized distribution businesses to concentrate on capital-intensive offshore deepwater projects. Concurrently, indigenous energy firms are stepping up to expand their footprint and manage domestic infrastructure.
Unlike upstream gas exploration or international liquefied natural gas trading, SNG operates strictly in the midstream and downstream domestic distribution space.
Established in 1998, SNG primarily serves industrial and commercial hubs with natural gas.
The company manages over 170 kilometers of pipeline infrastructure spanning manufacturing hubs in Ogun, Abia, and Rivers states.
Vaaris Energy Limited is a fast-growing Nigerian energy operator with active strategic interests across the domestic oil and gas value chain.
The acquisition offers Vaaris Energy immediate operational leadership in Nigeria’s domestic gas distribution sector at a critical juncture, as federal policies increasingly push for gas utilization under the National Gas Expansion Program.
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