British energy, Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to indigenous energy company Vaaris Energy Limited, marking its planned exit from Nigeria’s domestic gas distribution business.
Shell disclosed the agreement in a statement on Tuesday, October 13, 2026, saying the transaction aligns with its strategy to simplify its portfolio and concentrate investments on areas where it has competitive strengths.
“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,” Elohor Aiboni, Shell’s country chair in Nigeria, 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.”
The transaction covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one share in Shell Nigeria Gas Limited.
Completion of the deal is subject to regulatory conditions and approvals. Until the transaction is concluded, Shell Nigeria Gas Group will remain part of Shell and continue serving its customers under its existing operating arrangements.
Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers in Nigeria.
The company operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states and serves more than 130 connected customers.
The business focuses on domestic gas distribution and is not involved in upstream gas production, liquefied natural gas (LNG) operations or international gas trading.
Vaaris Energy is a privately held Nigerian energy company with interests across the oil and gas value chain. The acquisition would place Shell Nigeria Gas Group under local ownership, subject to the completion of the transaction.
The deal comes as Shell continues to streamline its global portfolio under Chief Executive Officer Wael Sawan, prioritising businesses and projects that offer competitive returns.