A consortium led by Ardova Plc and including Diadem Energy has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL), collectively known as Powergas, one of Africa’s largest compressed natural gas (CNG) producers and virtual pipeline distributors.
The transaction was announced on Friday by A.P. Moller Capital, through its Africa Infrastructure Fund I (AIF I), and Impala Energy Holdings, which entered into the agreement with the Ardova-led consortium.
Ardova, a Nigerian integrated energy and infrastructure company, operates across retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants and logistics. The acquisition will add a natural gas platform to its existing petroleum products and LPG businesses.
Founded in 2013 by the Clean Energy Group, Powergas pioneered the distribution of natural gas beyond conventional pipeline networks by supplying industrial and power customers through compression facilities and virtual pipelines.
Its Ebedei flare gas monetisation project, developed with investment from A.P. Moller Capital, converts gas that would otherwise be flared into energy for commercial and industrial use.
A.P. Moller Capital invested in PEL through Impala, which was AIF I’s first investment in April 2019. The investment supported the company through development, construction, commissioning and operational expansion.
PEL commenced operations in 2020, while its Ebedei compression plant was commissioned in 2021. The business has since expanded its distribution network across the South-East, South-South and South-West regions of Nigeria.
According to the companies, Powergas has created 175 direct jobs and additional employment opportunities across its supply chain.
Following completion, the acquisition will combine Powergas’ gas-sourcing relationships, compression infrastructure and industrial customer base with Ardova’s nationwide retail, logistics and distribution network.
Ardova plans to deploy CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months.
The company said the expansion would increase access to natural gas for commercial fleets and motorists while supporting efforts to boost domestic gas utilisation.
Ardova also plans to expand Powergas’ compression capacity across viable gas-producing corridors, creating additional offtake opportunities for associated and non-associated gas, supporting flare reduction and attracting further investment across the gas value chain.
The company said it would eventually seek to extend the platform into the wider West African market.
Executive Chairman of Ardova Plc, Dr. AbdulWasiu Sowami, said the acquisition would help connect Nigeria’s gas resources to the industrial, power and transportation sectors.
“Ardova brings a national distribution network, deep customer relationships and the ability to invest for the long term,” he said.
“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.”
Managing Director of Ardova Plc, Dr. Abiola Babatunde-Ojo, said the company would focus on expanding compression capacity, integrating CNG into its retail network and connecting more industries and fleets to domestic gas.
Vice-Chairman of Powergas, Pulak Sen, said Ardova’s national reach and Powergas’ compression infrastructure would provide a platform for further expansion.
Sam Senbanjo, Partner at A.P. Moller Capital, said PEL had progressed from a concept in 2019 to a fully operational CNG business.
Chairman of Diadem Group, the parent company of Diadem Energy, Dr. George Eluwa, said the acquisition would build on Diadem’s existing relationship with Powergas as its virtual-pipeline logistics partner.
Completion of the acquisition is expected around the end of 2026, subject to customary closing conditions, including required regulatory and other third-party approvals.
