Energy giant Shell Petroleum B.V. announced on Tuesday, October 13, 2026, from its corporate offices in Lagos that it has signed a definitive agreement to sell its full shareholding in the Shell Nigeria Gas (SNG) Group to indigenous Nigerian energy firm Vaaris Energy Limited.
​The transaction transfers control of SNG’s 170-kilometer pipeline network, which distributes natural gas across key industrial corridors in Ogun, Abia, and Rivers states to more than 130 commercial and industrial customers. The financial details of the transaction were not disclosed by either party.
​The decision aligns with Shell Chief Executive Officer Wael Sawan’s broader corporate mandate to simplify global operations and reallocate capital toward higher-return, core deepwater and export gas assets.
​Speaking in Lagos following the announcement, Elohor Aiboni, Country Chair of Shell Companies in Nigeria, noted:
​”Shell Nigeria Gas has served industrial and commercial customers in Nigeria for more than 25 years, supported by the commitment and expertise of its people. We believe this agreement provides a much stronger platform for the business’s next chapter under new ownership. Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria.”
​While Shell is stepping back from downstream domestic pipeline distribution, the company maintains its presence in Nigeria’s energy sector through offshore deepwater operations and its 25.6% stake in Nigeria LNG (NLNG) Limited.
The deal follows Shell’s earlier March 2025 sale of its onshore oil production subsidiary, the Shell Petroleum Development Company of Nigeria (SPDC), to Renaissance Africa Energy.
​The acquisition remains subject to customary regulatory approvals, including oversight from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Both organisations confirmed that during the regulatory review period, SNG will continue operating under its existing governance structure to ensure uninterrupted gas supply to manufacturing and industrial clients.
