Ardova-led consortium to acquire 100% of Powergas, Africa’s largest CNG producer

An Ardova Plc-led consortium, comprising Diadem Energy, has entered into an agreement to acquire 100 per cent of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL), collectively known as Powergas.

A.P. Moller Capital announced that, through its Africa Infrastructure Fund I (AIF I) and Impala Energy Holdings (Impala), it had entered into the agreement with the consortium led by Ardova.

Powergas is one of Africa’s largest compressed natural gas (CNG) producers and virtual pipeline distributors.

Ardova Plc is a Nigerian integrated energy and infrastructure company with operations spanning retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants and logistics.

The acquisition will add a natural gas platform to Ardova’s existing petroleum products and LPG businesses.

Powergas was founded in 2013 by the Clean Energy Group, which pioneered the model of taking natural gas beyond the pipeline by supplying industrial and power customers through compression facilities and virtual pipeline networks.

Its Ebedei flare gas monetisation project, developed with investment from A.P. Moller Capital, converts gas that would otherwise be flared into productive 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.

Working with local partners and management, A.P. Moller Capital supported PEL through development, construction, commissioning and operational scale-up.

PEL commenced operations in 2020, while its Ebedei compression plant was commissioned in 2021. The company has since expanded its distribution network across South-East, South-South and South-West Nigeria.

ALSO READ: $800m Ima Gas project, a landmark for Nigeria’s gas sector — NNPC Ltd

The company’s operations also have environmental and social implications, as PEL captures gas that would otherwise be flared and supplies it to industrial and commercial customers, many of whom use it instead of diesel generators.

The company said this helps reduce emissions both where the gas is produced and where it is consumed.

Powergas has also created 175 direct jobs and additional employment opportunities across its supply chain in Nigeria.

Following completion of the transaction, the enlarged business will combine Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base with Ardova’s nationwide retail, logistics and distribution network.

Ardova said it plans to deploy CNG infrastructure across its retail network and is targeting 100 CNG refuelling sites nationwide within 24 months.

The expansion is expected to increase access to gas for commercial fleets and motorists while supporting Nigeria’s drive to increase domestic gas utilisation.

The enlarged platform is also expected to strengthen Ardova’s position in domestic gas infrastructure and gas monetisation, particularly in partnership with upstream producers.

Ardova intends to expand Powergas’ compression capacity across viable gas-producing corridors to create firm offtake for associated and non-associated gas, support flare reduction and encourage further investment across the gas value chain.

Over time, the company plans to extend the platform into the wider West African market.

Dr. AbdulWasiu Sowami, Executive Chairman of Ardova Plc, said: “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.

“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 Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) and the federal government’s Decade of Gas programme. Our ambition is to deliver more affordable, lower-emission energy and lower transportation costs for Nigerians, while building a gas platform with relevance far beyond Nigeria.”

Dr. Abiola Babatunde-Ojo, Managing Director of Ardova Plc, said: “This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria. 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. We are building a platform that will serve customers at scale today and grow with Nigeria’s energy needs for decades to come.”

Pulak Sen, Vice-Chairman, Powergas, said: “Powergas began in 2013 with the Clean Energy Group’s vision of taking gas beyond the pipeline, and A.P. Moller Capital’s partnership helped us scale it. We are deeply grateful to both. 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. We are very excited about the next chapter.”

Sam Senbanjo, Partner at A.P. Moller Capital, said: “Since 2019, PEL has progressed from concept to a fully operational compressed-natural-gas business. Working alongside our partners, management and employees, we supported the business through development, construction, commissioning and scale-up, helping customers access domestic gas beyond the reach of the pipeline network. 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.”

Dr. George Eluwa, Chairman of Diadem Group, the parent company of Diadem Energy, said: “Having worked closely with Powergas as its virtual-pipeline logistics partner, we have seen first-hand the transformative potential of taking 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.”

Completion of the acquisition is expected around the end of 2026, subject to customary closing conditions, including required regulatory and other third-party approvals.