Shell to exit Nigeria’s domestic gas distribution business
Local firm Vaaris Energy will acquire Shell Nigeria Gas, which runs about 170 km of pipeline serving over 130 industrial and commercial customers in three states.
Shell Petroleum B.V. has agreed to sell its full interest in Shell Nigeria Gas Group to Vaaris Energy Limited, a privately held Nigerian energy company. With the deal, Shell is leaving domestic gas distribution in the country. The agreement covers Shell Nigeria Gas Holding B.V., which holds all but one share of Shell Nigeria Gas Limited (SNG). Financial terms of the operation were not disclosed.
SNG was founded in 1998 and supplies natural gas to more than 130 connected industrial and commercial customers through about 170 km of pipeline in Ogun, Abia and Rivers states. Vaaris Energy has interests across the oil and gas value chain and already operates in Nigeria.
“We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership,” said Elohor Aiboni, Shell’s Country Chair in Nigeria. “Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria.”
The sale is still requiring regulatory approval, SNG will remain part of Shell and keep serving its customers as usual until the deal closes.
Shell said the sale is part of its strategy to simplify its portfolio and focus on areas where it has competitive strengths. In Nigeria, it will keep prioritizing deepwater and integrated gas, including its interest in Nigeria LNG.
