Shell to exit Nigeria’s domestic gas market after 25 years, moves to sell business to local firm

• Shell has agreed to sell its entire interest in Shell Nigeria Gas Group to Nigerian firm Vaaris Energy Limited.

• The business operates about 170 kilometres of gas pipelines across Ogun, Abia and Rivers states.

• Its network supplies natural gas to more than 130 industrial and commercial customers.

• The deal is subject to regulatory approvals, while Shell retains its deepwater and integrated gas operations in Nigeria.

British energy giant Shell has agreed to sell its domestic gas distribution business in Nigeria to local energy firm Vaaris Energy Limited, marking its exit from the sector after more than 25 years.

Shell Petroleum B.V. announced the agreement on Tuesday, October 13, 2026, saying it would transfer its entire interest in the Shell Nigeria Gas Group to the Nigerian company.

The transaction marks the end of Shell’s direct involvement in Nigeria’s domestic gas distribution market, but does not mean the energy giant is leaving the country entirely.

Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers through approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states. The business serves more than 130 connected customers.

The company’s customers include businesses that depend on natural gas for industrial and commercial operations.

The financial terms of the agreement were not disclosed. Completion remains subject to regulatory conditions and approvals, meaning the business will continue operating under Shell until the transaction is finalised.

Shell’s Country Chair in Nigeria, Elohor Aiboni, said the business had served industrial and commercial customers in the country for more than 25 years, with support from its workforce.

Aiboni said the agreement would provide a stronger platform for the business’s next phase under new ownership.

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The sale aligns with Shell’s strategy to simplify its portfolio and concentrate investment on areas where it believes it has competitive strengths.

In Nigeria, the company plans to maintain its focus on deepwater oil production and integrated gas operations, including its interest in Nigeria LNG Limited, which produces liquefied natural gas for domestic and international markets.

The domestic gas distribution business being sold does not include Shell’s upstream gas production, liquefied natural gas operations or international gas trading.

Vaaris Energy is a Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.

The acquisition will transfer Shell’s domestic gas distribution interests to local ownership, while the company continues to pursue its other strategic energy operations in Nigeria.