Shell Sells Nigeria Gas Business to Vaaris Energy

Shell Petroleum B.V. has signed an agreement to sell its entire interest in Shell Nigeria Gas Group, which distributes natural gas to industrial and commercial customers, to Nigerian company Vaaris Energy Limited, Shell announced on 13 October 2026. The business runs about 170 kilometres of pipeline across Ogun, Abia and Rivers states and supplies more than 130 connected customers. The price has not been disclosed, the deal still needs regulatory approval and no closing date has been given. Here is what is being sold, who is buying and what it means.

What is being sold

Shell Nigeria Gas buys gas and delivers it by pipeline to factories and businesses. It does not produce gas itself. Until the deal is completed, it remains part of Shell and will keep serving customers as usual.

Why Shell is selling

Shell said the sale is part of its strategy to simplify its portfolio and focus investment where it has competitive strengths. Its Country Chair in Nigeria, Elohor Aiboni, 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."

Shell said that in Nigeria its continued focus is on deepwater operations and integrated gas, including its interest in Nigeria LNG.

Not Shell's first Nigerian exit

Business Insider Africa placed the sale alongside Shell's earlier disposal of its onshore oil subsidiary, the Shell Petroleum Development Company of Nigeria, to Renaissance, a deal completed on 13 March 2025. Shell Nigeria Gas was left out of that sale, as were Shell's deepwater company and its 25.6% interest in Nigeria LNG.

Shell has also invested offshore. Business Insider Africa reported that in November 2025 its subsidiary SNEPCo raised its interest in the production-sharing contract that contains the Bonga field from 55% to 65%, and that Shell approved the Bonga North development in December 2024.

So this is a reshaping of Shell's Nigerian business rather than a full withdrawal. After the sale, Shell would no longer supply gas directly to Nigerian factories through this network.

Who is Vaaris Energy?

Shell described Vaaris as a Nigerian energy company with interests across the oil and gas value chain and an existing operating presence in the country. BusinessDay profiled its board, which draws heavily on Nigeria's own oil industry:

• Tubotein "Tein" George, chairman. More than 30 years in the industry. He chairs Aveon Offshore and sits on the boards of Prime Exploration and Production and West Power and Gas, an investor in Eko Electricity Distribution.
• Kazeem Abiodun Raimi. Executive director for commercial at Platform Petroleum. He represents Platform on the boards of Seplat Energy and PNG Gas. He previously worked at Seplat, finishing as general manager for commercial, corporate planning and treasury.
• Nwangboje Uche. Chief financial officer of Pillar Oil since joining in 2008, and a fellow of the Institute of Chartered Accountants of Nigeria.
• Alfred O. Temile. Chief executive of E.A. Temile Ltd and Temile Development Co., with more than three decades in oil and gas, shipping and banking.
• Johnnie Eni. Chief operating officer of AA Holdings, who previously led business integrity at Seplat Energy.
• Shawley J. Coker. Founder of CISCON Nigeria in 1986 and a founding member of the Nigerian Content Development and Monitoring Board.

BusinessDay noted that a few directors came through Seplat, the NGX-listed producer it described as the model for local firms buying assets from international oil companies.

What it could mean for gas customers

For the 130-plus businesses on the network, the main question is whether supply continues smoothly. Shell says services will carry on as usual while approvals are sought. Business Insider Africa reported that no changes to customer contracts or tariffs were announced. Vaaris has not set out its plans for the network.

Gas is an important fuel for Nigerian manufacturers, especially where grid power is unreliable, so any change in owner, investment or pricing would be watched closely by industrial users in the three states.

What this means for investors

• Local ownership keeps growing. Another asset moves from an international major to a Nigerian company, continuing a trend seen in onshore oil.
• Watch listed energy names. Vaaris is not listed, but the deal sits in a sector where NGX-listed firms such as Seplat operate. Deals like this show where local capital and talent are going.
• Supply and pricing drive value. A gas distribution business depends on reliable supply, customer contracts and pricing, so future details on investment and tariffs will matter.
• The deal is not done yet. Regulatory approval is still needed. Wait for confirmation before treating it as final.
• Shell is not leaving Nigeria. Its deepwater and Nigeria LNG interests remain, so news on Bonga and NLNG still matters for the oil sector.

This is for information only and is not investment advice.

FAQ

Who bought Shell Nigeria Gas?

Shell agreed to sell its entire interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company. The deal still needs regulatory approval.

How much did Vaaris pay for Shell Nigeria Gas?

The price was not disclosed by Shell, and no closing date has been announced.

Will Shell Nigeria Gas customers be affected?

Shell says the business will keep serving customers as usual until the deal completes. No changes to contracts or tariffs were announced.

Sources

• Punch, "Shell signs deal to sell Nigerian gas business" (14 Oct 2026)
• Gas Processing and LNG, "Shell signs agreement to sell Nigeria domestic gas business to Vaaris Energy" (13 Oct 2026)
• BusinessDay, "Faces behind Vaaris, new owner of Shell's Nigerian gas business" (14 Oct 2026)
• Business Insider Africa, "British energy giant Shell moves to exit Nigeria's domestic gas distribution business" (13 Oct 2026)