Shell Quits Domestic Gas Distribution, Sells SNG To Nigerian Firm, Vaaris Energy
Peter Uzoho Shell Petroleum B.V. has signed an agreement to sell its full interest in the Shell Nigeria Gas Group to Nigerian energy company, Vaaris Energy Limited. Shell Nigeria Gas
Shell's divestment from Nigeria's domestic gas distribution business is the latest step in a years-long retreat by international oil companies from onshore and downstream assets in the country, a trend that has seen majors like Shell, ExxonMobil, Equinor and TotalEnergies sell off various Nigerian holdings to local and indigenous firms. Shell Nigeria Gas has historically supplied natural gas to industrial and commercial customers, playing a role in Nigeria's efforts to boost domestic gas utilisation and reduce reliance on diesel and other costlier fuel sources for manufacturers.
All three outlets agree on the core facts: Shell Petroleum B.V. has agreed to sell its entire stake in the Shell Nigeria Gas Group to Vaaris Energy Limited, a Nigerian energy company, as part of Shell's broader strategy to concentrate on what it considers more strategic businesses. None of the reports yet disclose the financial value of the deal, its expected completion timeline, or regulatory approvals that may be required, nor details on how the transition will affect existing customers and staff of Shell Nigeria Gas.