Shell Exits Nigeria’s Gas Distribution Business, Sells SNG Group To Vaaris Energy

Shell Nigeria Gas to continue operations as usual until transaction is completed

By Henryrich Ojo | Newsworld

Shell Petroleum B.V. has announced the sale of its full interest in Shell Nigeria Gas Group (SNG) to Vaaris Energy Limited, a Nigerian energy company, in a move that will mark its exit from Nigeria’s domestic gas distribution business. The company disclosed the transaction in a statement on Tuesday, explaining that the deal covers its gas distribution operations in the country.

FG Launches D30 Digital Platform, Targets $100bn Economy Boost, 3 Million Jobs By 2030

Shell said SNG Group would continue serving its industrial and commercial customers and operate as usual until the transaction is completed. The company explained that the sale aligns with its strategy to simplify its portfolio and concentrate investments in areas where it has competitive strengths, particularly deepwater operations and integrated gas in Nigeria.

Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers and operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states. Shell noted that the business has served Nigerian customers for more than 25 years and does not engage in upstream gas production, liquefied natural gas (LNG) or international gas trading. Vaaris Energy Limited, which has an operational presence in Nigeria and interests across the oil and gas value chain, is expected to take the business forward under new ownership.