Shell Petroleum B.V. has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian energy company, Vaaris Energy Limited, as the energy major continues to streamline its portfolio and concentrate investment on deepwater and integrated gas operations.
 
The transaction, which is subject to regulatory conditions and approvals, covers a domestic gas distribution business with more than 130 connected commercial and industrial customers across Ogun, Abia and Rivers states.
 
Established in 1998, Shell Nigeria Gas Limited operates about 170 kilometres of pipeline infrastructure supplying natural gas to industrial and commercial customers.
 
Shell’s Country Chair in Nigeria, Elohor Aiboni, said the business had served customers in the country for more than 25 years.
 
“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. 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,” Aiboni said.
 
The transaction includes Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
 
Vaaris Energy Limited is a Nigerian energy company with interests across the oil and gas value chain and an existing operational footprint in the country.
 
Shell said the sale was consistent with its strategy of simplifying its portfolio and concentrating investment in areas where it has competitive strengths.

The company said its continued focus on deepwater and integrated gas operations in Nigeria included its interest in Nigeria LNG.
 
Until completion of the transaction, Shell Nigeria Gas Group will remain part of Shell and continue to serve its customers and operate as usual.
 
Shell Nigeria Gas does not operate in upstream gas production, liquefied natural gas, or international gas trading.