By Emmanuella Opara | October 27th 2026
KEY POINTS
- Standard Chartered acted as sole financial adviser to Shell International Limited on the sale of Shell Nigeria Gas Limited to Vaaris Energy Limited.
- The transaction agreement was signed on October 13, 2026, with completion expected in the first half of 2027.
- Shell Nigeria Gas operates a gas distribution network serving industrial and commercial customers.
- The sale is expected to support the continued development of the business under Vaaris Energy.
MAIN STORY
Standard Chartered Bank has advised Shell International Limited on the sale of Shell Nigeria Gas Limited to Vaaris Energy Limited, in a transaction expected to be completed in the first half of 2027.
The bank disclosed its role in a statement, saying it served as the sole financial adviser throughout the transaction, which involves one of Nigeria’s leading gas distribution platforms.
Shell entered into the sale agreement on October 13, 2026. The transaction will transfer a business with an established gas distribution network serving industrial and commercial customers to Vaaris Energy.
Shell Nigeria Gas provides gas supply solutions to businesses through its distribution infrastructure, positioning it within Nigeria’s domestic gas market as demand for energy continues to grow.
Standard Chartered said its advisory responsibilities covered the entire sale process, including transaction preparation and positioning, engagement with prospective buyers, deal structuring, negotiations, due diligence coordination and transaction documentation.
The Chief Executive Officer and Head of Coverage for Africa at Standard Chartered, Dalu Ajene, said Nigeria’s gas sector could contribute to the country’s economic ambitions and meet rising domestic energy demand.
He added that investment in critical energy infrastructure across Africa was necessary to support industrial growth and long-term development.
Ajene said the transaction demonstrated the role of strategic investment in the sector, while highlighting the bank’s focus on connecting clients in Nigeria and other African markets to international capital and investors.
The Head of Mergers and Acquisitions for Africa at Standard Chartered, Yemisi Deji-Bejide, said the deal reflected the bank’s ability to combine international expertise with local market knowledge in executing complex transactions.
The bank said the sale supported Shell’s portfolio optimisation strategy while providing a platform for the continued development of Shell Nigeria Gas under Vaaris Energy.
THE ISSUES
The transaction comes as Nigeria seeks to expand the use of natural gas across industrial and commercial activities. Gas distribution infrastructure connects suppliers to businesses that require energy for their operations, making the ownership and development of such networks relevant to the growth of domestic gas consumption.
For Shell, the sale forms part of its portfolio optimisation strategy. For Vaaris Energy, the acquisition provides access to an established distribution platform and its existing customer base.
However, the completion of the transaction remains subject to the process leading to the expected close in the first half of 2027. The statement did not disclose the financial terms of the deal or provide details of any planned changes to Shell Nigeria Gas’s operations following the sale.
WHAT’S BEING SAID
“Nigeria’s gas sector has an important role to play in supporting the country’s economic ambitions and meeting growing domestic energy demand. Across Africa, investment in critical energy infrastructure is essential to unlocking industrial growth and long-term development, and this transaction demonstrates the role strategic investment can play in advancing that opportunity. At Standard Chartered, connecting our clients in Nigeria and across Africa to global capital and investors remains a priority. We are pleased to have supported Shell by bringing together the strength of our international network, deep local knowledge and sector expertise,” Dalu Ajene, Chief Executive Officer and Head of Coverage for Africa at Standard Chartered, said.
“We are proud to have advised Shell on the sale of one of Nigeria’s leading gas distribution platforms. As sole financial adviser, we brought together end-to-end M&A execution, deep sector expertise and strong buyer connectivity. This transaction demonstrates the strength of our Africa M&A franchise and our ability to combine global capabilities with local market insight to execute complex, strategically important transactions for our clients,” Yemisi Deji-Bejide, Head of Mergers and Acquisitions for Africa at Standard Chartered, said.
WHAT’S NEXT
The transaction is expected to be completed in the first half of 2027. Until then, attention will remain on the steps required to conclude the sale and the eventual transition of Shell Nigeria Gas to Vaaris Energy.
BOTTOM LINE
Standard Chartered’s advisory role in Shell’s sale of its Nigerian gas distribution business marks a change in ownership for an established player in the domestic gas market. The transaction’s longer-term significance will depend on how Vaaris Energy develops the distribution network and supports gas supply to industrial and commercial customers.
