Ardova Plc-led consortium has entered into an agreement to acquire 100 percent of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas, one of Africa’s largest compressed natural gas (CNG) producers and virtual pipeline distributors.
The consortium comprises Ardova and Diadem Energy, while the transaction is being undertaken with A.P. Moller Capital and Impala Energy Holdings.
The deal, announced by A.P. Moller Capital, is expected to be completed around the end of 2026, subject to customary closing conditions, including required regulatory and other third-party approvals.
The acquisition will give Ardova a natural gas platform to complement its existing petroleum products, liquefied petroleum gas, shipping, aviation fuel, lubricants and logistics businesses.
Powergas was founded in 2013 by the Clean Energy Group to supply natural gas beyond the conventional pipeline network through compression facilities and virtual pipeline systems.
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 Energy Holdings in 2019. The investment supported the company through development, construction, commissioning and operational expansion.
Powergas Ebedei commenced operations in 2020, while its Ebedei compression plant was commissioned in 2021. The company has since expanded its distribution network across the South-East, South-South and South-West regions.
The company currently operates four mother stations and a fleet of more than 250 tube skids, supplying compressed natural gas to industrial, commercial and power customers.
Following completion of the acquisition, Ardova said it would combine Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base with its nationwide retail, logistics and distribution network.
The company plans to deploy CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months.
The expansion is expected to increase access to natural gas for commercial fleets and motorists while supporting the Federal Government’s efforts to increase domestic gas utilisation.
Commenting on the transaction, Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami, said the acquisition would enable the company to expand the use of natural gas across Nigeria.
“Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid,” Sowami said.
He added that Ardova would bring its national distribution network, customer relationships and long-term investment capacity to the business.
“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,” he said.
Sowami said the company’s ambition was to provide lower-emission energy and reduce transportation costs while developing a gas platform with potential beyond Nigeria.
The Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, said the acquisition would provide the infrastructure and capabilities required to expand the company’s presence in the gas market.
“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,” Babatunde-Ojo said.
He said the company intended to build a platform capable of serving customers at scale and expanding alongside Nigeria’s energy requirements.
The Vice-Chairman of Powergas, Pulak Sen, said the company began in 2013 with the objective of taking natural gas beyond the conventional pipeline network.
He said A.P. Moller Capital’s partnership had helped Powergas scale its operations, adding that Ardova’s nationwide reach would complement the company’s existing compression infrastructure.
“We are very excited about the next chapter,” Sen said.
A.P. Moller Capital Partner, Sam Senbanjo, said Powergas had progressed from a concept into an operational CNG business since the investment in 2019.
He said the company had enabled customers to access domestic gas beyond the reach of the existing pipeline network.
The Chairman of Diadem Group, parent company of Diadem Energy, Dr George Eluwa, said his company had worked closely with Powergas as its virtual-pipeline logistics partner.
Eluwa said the transaction would provide an opportunity to expand the delivery of natural gas beyond conventional pipeline networks.
Powergas’ operations also include the monetisation of flare gas, which involves capturing gas that would otherwise be flared and supplying it to industrial and commercial users.
According to the companies, the model has environmental benefits because customers can use CNG in place of diesel generators, reducing emissions associated with both gas production and energy consumption.
The business has also created 175 direct jobs, in addition to employment generated across its supply chain.
Ardova said it also plans to expand Powergas’ compression capacity across viable gas-producing corridors.
The company said the expansion would create additional offtake opportunities for associated and non-associated gas, support flare reduction and encourage investment across the domestic gas value chain.
Over time, Ardova intends to expand the platform into other West African markets.
Completion of the transaction remains subject to regulatory approvals and other customary closing conditions.