A consortium led by Nigerian integrated energy company Ardova Plc and Diadem Energy has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL), together known as Powergas, from A.P. Moller Capital and Impala Energy Holdings. The agreement, announced Friday, transfers one of Africa’s largest compressed natural gas (CNG) producers and virtual pipeline distributors to Ardova.
A.P. Moller Capital said the sale is being made through its Africa Infrastructure Fund I (AIF I) and Impala Energy Holdings. Ardova Plc operates across retail fuels, liquefied petroleum gas (LPG), shipping, aviation fuel, lubricants and logistics in Nigeria. The transaction adds a natural gas platform to Ardova’s existing petroleum products and LPG businesses.
Powergas operations and impact#
Powergas was founded in 2013 by the Clean Energy Group, which developed a model for moving natural gas beyond fixed pipelines. The company supplies 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 energy for commercial and industrial use.
A.P. Moller Capital invested in Powergas Ebedei Limited through Impala, which was the first investment of AIF I in April 2019. Working alongside local partners and management, A.P. Moller Capital supported the business through development, construction, commissioning and operational scale-up. Powergas Ebedei Limited began operations in 2020, and its Ebedei compression plant was commissioned in 2021. Distribution has since expanded across South-East, South-South and South-West Nigeria.
The environmental and social impact is twofold. Powergas captures gas that would otherwise be flared and supplies it to industrial and commercial customers, many of whom use it in place of diesel generators, reducing emissions both where the gas is produced and where it is used. The business has created 175 direct jobs and additional roles across its supply chain in Nigeria.
Ardova’s expansion plans#
After 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 and is targeting 100 CNG refuelling sites nationwide within 24 months, expanding access to gas for commercial fleets and motorists while supporting Nigeria’s drive to increase domestic gas utilisation.
- Deploy CNG infrastructure across Ardova’s retail network
- Target 100 CNG refuelling sites nationwide within 24 months
- Expand Powergas compression capacity across viable gas-producing corridors
- Extend the platform into the wider West African market over time
The enlarged platform is expected to position Ardova as a domestic gas infrastructure and gas monetisation partner for upstream producers. Ardova also intends to create firm offtake for associated and non-associated gas, support flare reduction and unlock further investment across the gas value chain. The plan aligns with Nigeria’s federal government’s Decade of Gas programme and the Presidential Initiative on Compressed Natural Gas and Electric Vehicles.
The sale represents the next stage in Powergas’ development. Ardova, with its partner Diadem, combines Nigerian market knowledge with energy distribution and logistics capabilities, and is well positioned to build on the operational business developed during A.P. Moller Capital’s ownership.
Leadership comments#
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 Ahmed 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.”
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 of 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.”
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.”
