The proposed transaction covers Shell Nigeria Gas Group, which supplies natural gas to industrial and commercial customers, and remains subject to regulatory approvals.
Shell has signed an agreement to sell its interest in Shell Nigeria Gas Group to Nigerian energy company Vaaris Energy Limited, in a transaction that would transfer ownership of the gas distribution business to a new operator.
The agreement covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited (SNG).
Shell Nigeria Gas has served industrial and commercial customers in Nigeria for more than 25 years, supplying natural gas to businesses that depend on the fuel for their operations.
The transaction is subject to regulatory conditions and the necessary approvals. Until completion, the business will remain part of the Shell Group and continue serving its customers and operating as usual.
Shell’s Country Chair in Nigeria, Elohor Aiboni, described the agreement as an opportunity for the business to enter a new phase under different ownership.
“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.
She added that the agreement would provide a stronger platform for the company’s next chapter, while Shell continued to concentrate on its strategic deepwater and integrated gas operations in Nigeria.
Implications for Nigeria’s gas market
The proposed sale comes amid continued efforts to expand the use of natural gas across Nigeria’s industrial and commercial sectors.
Gas distribution businesses play an important role in connecting available supplies to factories and other customers that require dependable energy for production, processing and related activities.
A change in ownership could create opportunities for a new operator to reshape the company’s investment priorities and commercial strategy. However, the transaction’s eventual impact will depend on the terms of the acquisition, the incoming owner’s operational plans and the regulatory conditions attached to the deal.
For existing customers, continuity of supply and service will remain important as the transaction progresses.
The agreement does not mean the business has already changed hands. Until all required approvals are secured and completion takes place, Shell Nigeria Gas Group will continue operating under the existing arrangement.
The development also reflects Shell’s wider portfolio strategy in Nigeria, where the company has indicated that it intends to focus on areas including deepwater production and integrated gas.