Shell Plans to Sell 170-Kilometer Natural Gas Pipeline Business in Nigeria

en.Wedoany.com Reported - On October 13, Shell announced that its subsidiary Shell Petroleum B.V. has signed an agreement with Nigerian energy company Vaaris Energy Limited to sell its entire equity interest in Shell Nigeria Gas Group. The transaction involves approximately 170 kilometers of natural gas pipelines and more than 130 industrial and commercial customers. The specific transaction amount has not been disclosed and the deal still requires regulatory approval.

The core asset of this transaction is the natural gas distribution network operated by Shell Nigeria Gas Limited (SNG). The company operates in three states—Ogun, Abia, and Rivers—delivering natural gas through pipelines to local industrial and commercial users. SNG was established in 1998 and has been in continuous operation for more than 25 years. Its business scope does not include upstream natural gas production, liquefied natural gas production, or international natural gas trading.

In terms of equity structure, this transaction covers Shell Nigeria Gas Holding B.V., which holds all shares of SNG except for one share. Vaaris Energy Limited is a Nigerian indigenous energy company involved in multiple segments of the oil and gas industry chain and has already been operating in the country. This signing involves the natural gas distribution business equity held by Shell.

Under the transaction arrangements, before regulatory approval and relevant conditions are satisfied and the transaction is officially completed, Shell Nigeria Gas Group will remain under Shell's ownership and will continue to maintain existing natural gas supply and customer services. The two parties have not yet announced a specific closing date.

Elohor Aiboni, head of Shell's Nigeria operations, stated that the company will continue to focus on local deepwater oil and gas and integrated gas businesses, including retaining its relevant interest in Nigeria LNG. The scope of this divestment is limited to Nigeria's domestic natural gas distribution business and does not involve the aforementioned retained assets.