Shell Plc has signed an agreement to sell its entire interest in Shell Nigeria Gas (SNG) Group to Nigerian energy company Vaaris Energy, as the oil major continues to streamline its portfolio and focus on strategic investments.
The company announced the transaction on Tuesday, October 13, 2026, noting that completion remains subject to regulatory approvals and other conditions. The financial terms of the deal were not disclosed.
The sale covers Shell Nigeria Gas Holding B.V., established in 2019, which holds all but one of the shares in Shell Nigeria Gas Limited.
The transaction aligns with Shell Chief Executive Officer Wael Sawan’s strategy to simplify the company’s portfolio and prioritise investments expected to deliver stronger returns, particularly in oil and gas.
Commenting on the agreement, Shell’s Country Chair in Nigeria, Elohor Aiboni, said the gas distribution business had served industrial and commercial customers in the country for more than 25 years, backed by an experienced workforce.
“We believe this agreement provides a much stronger platform for the business’ next chapter under new ownership. Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria,” Aiboni said.
Shell added that SNG Group would continue its normal operations and serve customers until the transaction is completed.
Established in 1998, Shell Nigeria Gas supplies natural gas to industrial and commercial customers, supporting businesses that rely on gas for their operations.
The company operates approximately 170 kilometres of pipeline infrastructure across Ogun, Abia and Rivers states.
Its acquisition will give Vaaris Energy control of an established domestic gas distribution business with an existing customer base and pipeline network.
Vaaris Energy is a privately held Nigerian energy company with interests across the oil and gas value chain and an existing operational presence in the country.
The acquisition comes at a time when reliable gas supply remains important to Nigerian industries seeking alternatives to more expensive or less reliable energy sources.
The planned divestment comes as Shell continues to adjust its global energy portfolio and production outlook.
Last week, the company raised its third-quarter integrated gas production forecast to between 740,000 and 780,000 barrels of oil equivalent per day (boepd), from its earlier estimate of 570,000 to 630,000 boepd.
In Nigeria, Shell continues to maintain a strategic presence in deepwater oil and integrated gas operations while divesting selected assets.
The sale of SNG therefore reflects a shift in the composition of its Nigerian portfolio rather than a complete withdrawal from the country’s energy sector.
