Shell Petroleum B.V. has entered into an agreement to divest its full stake in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, subject to the approval of relevant regulators. The transaction is intended to give the domestic gas distribution business a stronger platform under new ownership while allowing Shell to concentrate on its deep‑water and integrated gas operations in Nigeria.
**What does the sale cover?**
The deal includes Shell Nigeria Gas Holding B.V., created in 2019, which currently holds all but one share of Shell Nigeria Gas Limited. The gas subsidiary, established in 1998, operates roughly 170 km of pipeline across Ogun, Abia and Rivers states and supplies natural gas to more than 130 industrial and commercial customers.
**Why is Shell making the move?**
Shell’s Country Chair for Nigeria, Elohor Aiboni, said the agreement “provides a much stronger platform for the business’ next chapter under new ownership.” She added that Shell will continue to focus on its strategic deep‑water and integrated gas positions, including its interest in [Nigeria LNG](https://www.ngln.com.ng), while the sale does not affect its upstream gas production, liquefied natural gas (LNG) or international gas trading activities.
**Who is the buyer?**
[Vaaris Energy Limited](https://www.vaarisenergy.com) operates across the oil and gas value chain and already has an operational presence in Nigeria. The company plans to use the acquisition to expand its footprint in the domestic gas market.
**What are the next steps?**
The transaction remains conditional on the satisfaction of regulatory requirements and approvals. Until the sale is completed, Shell Nigeria Gas Group will continue to function as part of Shell, maintaining service to its existing customers.
**Key figures**
- Pipeline network: about 170 km across three states.
- Customer base: over 130 industrial and commercial users.
- Ownership transfer: 100 % of Shell Nigeria Gas Group to Vaaris Energy.
- Exclusions: Shell’s upstream gas production, LNG facilities and international gas trading remain with Shell.
The agreement reflects Shell’s broader portfolio‑simplification strategy, aiming to invest where it holds competitive advantages while enabling local partners to grow the domestic gas sector.