Shell To Exit Nigeria’s Gas Distribution Business

Shell Petroleum B.V. has announced its imminent exit from Nigeria’s gas distribution business after selling its full interest in Shell Nigeria Gas Group (SNG) to Vaaris Energy Limited, a Nigerian company.

Naija News reports that the company announced this in a statement on Tuesday, saying the deal covers its domestic gas distribution business in Nigeria.

According to the statement, SNG Group would remain part of the company, continue serving its customers, and operate as usual until the transaction is completed.

Shell said the sale aligns with its strategy to simplify its portfolio and concentrate investment in areas where it has competitive strengths.

The statement added that SNG does not engage in upstream gas production, liquefied natural gas (LNG), or international gas trading.

The company said, “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’ next chapter under new ownership. Shell continues to focus on strategic Deepwater and Integrated Gas positions in Nigeria.”

Established in 1998, SNG supplies natural gas to industrial and commercial customers and operates about 170 kilometres of pipeline infrastructure across Ogun, Abia, and Rivers states.

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