An Ardova Plc-led consortium, including Diadem Energy, has agreed to acquire 100 per cent of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL), in a deal that will expand Ardova’s footprint into Nigeria’s growing natural gas market.
The transaction, agreed with A.P. Moller Capital through its Africa Infrastructure Fund I (AIF I) and Impala Energy Holdings, is expected to be completed by the end of 2026, subject to regulatory and other required third-party approvals.
Powergas is one of Africa’s major compressed natural gas (CNG) producers and virtual pipeline distributors, supplying industrial, commercial and power customers that are beyond the reach of Nigeria’s conventional gas pipeline network.
For Ardova, the acquisition adds natural gas to a diversified energy portfolio that includes petroleum products, liquefied petroleum gas (LPG), shipping, aviation fuel, lubricants and logistics.
The company said the deal would strengthen its ability to participate in the development of Nigeria’s domestic gas market while creating opportunities to expand CNG access for industries, commercial users and transportation operators.
Founded in 2013 by the Clean Energy Group, Powergas produces and distributes CNG through compression facilities and road-based logistics infrastructure. Its Ebedei project in Delta State was developed to monetise gas that might otherwise have been flared.
A.P. Moller Capital invested in PEL through Impala Energy Holdings in April 2019. PEL commenced operations in 2020, while its Ebedei compression plant was commissioned in 2021.
Since then, Powergas has expanded its distribution network across Nigeria’s Southeast, Southsouth and Southwest regions. The company currently operates four mother stations and has a fleet of more than 250 tube skids.
Under the planned acquisition, Ardova intends to accelerate the deployment of CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months of completion.
The company also plans to increase Powergas’ compression capacity in gas-producing regions and raise its offtake of both associated and non-associated gas.
AbdulWasiu Sowami, Executive Chairman of Ardova Plc, said the acquisition would enable the company to deepen its participation in the gas sector.
“Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid,” Sowami said.
“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.”
Abiola Babatunde-Ojo, Managing Director of Ardova, said the immediate priority would be to expand Powergas’ compression capacity and integrate CNG facilities into Ardova’s retail network.
“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,” she said.
Pulak Sen, Vice-Chairman of Powergas, said the transaction would provide the company with an opportunity to expand into new markets.
Sam Senbanjo, Partner at A.P. Moller Capital, said the fund had supported PEL from its development and construction through commissioning and operational expansion since 2019.
He said the company had helped customers access domestic gas in areas not served by the conventional pipeline network.
George Eluwa, Chairman of Diadem Group, said Diadem had worked with Powergas as its virtual-pipeline logistics partner. Diadem Energy, a member of the group, will participate in the acquisition consortium.
The transaction will transfer ownership of Powergas from A.P. Moller Capital and its investment partners to the Ardova-led consortium, subject to the satisfaction of completion conditions and receipt of the necessary approvals.
