Follow Us on Google
An Ardova Plc-led consortium has agreed to acquire 100 per cent of Powergas, one of Africa’s largest Compressed Natural Gas (CNG) producers and virtual pipeline distributors, in a deal expected to close by the end of 2026, subject to regulatory and other third-party approvals.
The consortium, which includes Diadem Energy, will acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited from A.P. Moller Capital’s Africa Infrastructure Fund I and Impala Energy Holdings.
Following completion, Ardova plans to roll out CNG infrastructure across its nationwide retail network, targeting 100 CNG refuelling stations within 24 months.
The expansion is aimed at increasing access to gas for commercial fleets and motorists while strengthening Ardova’s position in Nigeria’s growing gas market.
The acquisition will combine Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base with Ardova’s retail, logistics and distribution network.
Ardova also plans to expand Powergas’ compression capacity across viable gas-producing corridors as part of efforts to provide offtake for associated and non-associated gas, reduce gas flaring and stimulate further investment across the gas value chain.
The company said the enlarged platform would position it as a major domestic gas infrastructure and monetisation partner for upstream producers, with plans eventually to extend operations into other West African markets.
Executive Chairman of Ardova Plc, Dr. AbdulWasiu Sowami, said the acquisition reflected the company’s belief that natural gas would play a major role in Nigeria’s next phase of energy development.
“Nigeria’s next era of energy development will be built on gas, and it will be built at scale. Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid,” Sowami said.
He added: “Ardova brings a national distribution network, deep customer relationships and the ability to invest for the long term.
“Together, we intend to connect Nigeria’s abundant gas resources to industry, power and transportation, supporting President Bola Ahmed Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) and the Federal Government’s Decade of Gas programme.”
According to him, the company’s ambition is to provide more affordable and lower-emission energy, reduce transportation costs and build a gas platform extending beyond Nigeria.
Managing Director of Ardova Plc, Dr. Abiola Babatunde-Ojo, said the immediate priority would be expanding compression capacity and taking CNG into the company’s retail network.
“This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria,” he said.
“Our focus now is execution: expanding compression capacity, bringing CNG into our retail network and connecting more industries and fleets to a reliable domestic energy source.”
Powergas was founded in 2013 by the Clean Energy Group with a business model designed to take natural gas beyond conventional pipelines through compression facilities and virtual pipeline networks.
Its Ebedei flare gas monetisation project converts gas that would otherwise be flared into energy for commercial and industrial customers.
A.P. Moller Capital invested in Powergas Ebedei Limited through Impala in April 2019. The Ebedei compression plant was commissioned in 2021 and its distribution network subsequently expanded across South-East, South-South and South-West Nigeria.
Powergas currently operates four mother stations and a fleet of more than 250 tube skids. The business has also created 175 direct jobs, according to the statement.
Vice-Chairman of Powergas, Pulak Sen, described the acquisition as the beginning of another phase in the company’s development.
“Ardova’s national reach and our compression backbone are a natural fit – together, we can expand into new markets and geographies and play a leading role in delivering Nigeria’s Auto-Gas vision,” he said.
Partner at A.P. Moller Capital, Sam Senbanjo, said Powergas Ebedei had grown from a concept into a fully operational CNG business since the investment in 2019.
“We are proud of what has been achieved and believe Ardova and Diadem are well placed to support Powergas in its next phase of growth,” he said.
Chairman of Diadem Group, Dr. George Eluwa, said the company had worked with Powergas as a virtual-pipeline logistics partner and had witnessed the potential of transporting natural gas beyond the conventional pipeline network.
“For Diadem Group, this is the continuation of a journey that began on the ground with Powergas, and a real opportunity to contribute to Nigeria’s energy future,” Eluwa said.
