[BREAKING] Shell Exits Nigerian Domestic Gas Market with SNG Sale to Vaaris
Shell Petroleum B.V. is officially exiting Nigeria’s domestic gas distribution market after more than two decades, having signed an agreement
Shell Petroleum B.V. is officially exiting Nigeria’s domestic gas distribution market after more than two decades, having signed an agreement to sell its entire interest in the Shell Nigeria Gas (SNG) to indigenous operator Vaaris Energy Limited.
The deal aligns with the global energy giant’s strategy to streamline its portfolio and concentrate investments in areas of competitive strength, according to a statement on Tuesday.
Moving forward, Shell will focus its Nigerian operations heavily on strategic Deepwater and Integrated Gas positions, including its ongoing interests in Nigeria LNG.
Vaaris Energy, a Nigerian energy company with an established operational footprint, is set to inherit a robust domestic network. Established in 1998, SNG currently operates roughly 170 kilometers of pipeline infrastructure across Ogun, Abia, and Rivers states. The subsidiary supplies natural gas exclusively to more than 130 industrial and commercial customers, holding no operations in upstream gas production, liquefied natural gas or international trading.
“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,” said Elohor Aiboni, Shell’s country chair in Nigeria. “We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership.”
The transaction specifically covers Shell Nigeria Gas Holding B.V., an entity established in 2019 that holds all but one share in SNG.
The transition of ownership remains subject to standard regulatory conditions and approvals. Until the completion of the sale, SNG will remain a part of Shell and will continue to operate and serve its customers as usual.
