The deal involves 170 kilometres of pipelines supplying more than 130 businesses.

The agreement, announced on October 13, 2026, will transfer Shell’s interest in Shell Nigeria Gas Group to Vaaris Energy Limited, subject to regulatory approval.

According to Shell’s official announcement⁠, the financial value of the transaction has not been disclosed.

What exactly is Shell selling?

Shell Nigeria Gas was established in 1998 to supply natural gas to industrial and commercial customers.

The company operates approximately 170 kilometres of gas pipelines across Ogun, Abia and Rivers states, serving more than 130 connected customers.

These pipelines help manufacturers and businesses access natural gas for industrial operations.

The agreement covers Shell Nigeria Gas Holding B.V., which owns nearly all the shares in the Nigerian operating company.

It does not involve the sale of Shell itself or its remaining Nigerian oil and gas investments.

Who are the people behind Vaaris Energy?

A BusinessDay investigation published on October 16⁠ identifies six experienced executives on Vaaris Energy’s board.

The company is chaired by Tubotein “Tein” George, an energy businessman involved in offshore engineering, fabrication and infrastructure investments.

Other identified directors include Kazeem Abiodun Raimi, a Seplat Energy board member and Platform Petroleum executive, and Alfred Temile, whose business interests include energy and maritime logistics.

The board also includes Nwangboje Uche, a finance executive at Pillar Oil; Johnnie Eni, chief operating officer of AA Holdings; and Shawley Coker, founder of oilfield services company CISCON Nigeria.

While these individuals have been identified as directors, their individual ownership stakes have not been publicly established.

Why is Shell selling the business?

Shell says the transaction supports its strategy of simplifying operations and concentrating investment in businesses where it has competitive advantages.

In Nigeria, the company intends to retain its focus on deepwater oil production and integrated gas operations, including its interest in Nigeria LNG.

The proposed sale follows Shell’s earlier divestment of its Nigerian onshore subsidiary to Renaissance Africa Energy in March 2025.

However, the latest transaction is separate and concerns domestic gas distribution.

What this means for Nigeria

The acquisition could place an established industrial gas network under Nigerian ownership, creating opportunities for further investment and expansion.

Reliable gas supply is important for manufacturing because it supports production and can reduce dependence on alternative fuels.

However, local ownership alone does not guarantee lower energy costs or improved supply.

The more important question is whether Vaaris can expand the network, improve reliability and help Nigerian industries access affordable energy.

Until regulatory approvals are obtained and the transaction is completed, Shell will continue operating the business as usual.