A consortium led by Ardova Plc, including Diadem Energy, has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas. The deal, announced by A.P. Moller Capital, is expected to close by the end of 2026. Powergas, founded in 2013 by the Clean Energy Group, pioneered the “virtual pipeline” model, compressing natural gas and transporting it by road to industrial, commercial, and power customers beyond Nigeria’s fixed pipeline grid.
Powergas operates four mother stations in Ikorodu, Ogbele, Ebedei, and Ore, and a fleet of over 250 tube skids, having delivered over 600 million standard cubic meters of compressed natural gas as of December 2025. The company’s flagship Ebedei flare gas monetization project in Delta State, developed with A.P. Moller Capital’s backing since 2019, converts otherwise flared gas into usable energy and has helped cut emissions while supplying firms that would otherwise rely on diesel generators.
For Ardova, the acquisition adds a strategic gas platform to its existing downstream portfolio of petroleum products, LPG, aviation fuel, lubricants, shipping, and logistics. The Lagos-based integrated energy company plans to deploy compressed natural gas infrastructure across its nationwide retail network, targeting 100 CNG refueling sites within 24 months. This expansion aligns with the federal government’s Decade of Gas initiative, launched in 2021 to transform Nigeria into a gas-powered economy by 2030.
The acquisition also supports President Bola Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles, which seeks to lower transport costs and emissions by promoting auto-gas adoption. Ardova’s Executive Chairman, Dr. AbdulWasiu Sowami, explained that Nigeria’s next era of energy development will be built on gas, and it will be built at scale. He emphasized that Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid.
Dr. Abiola Babatunde-Ojo, Managing Director of Ardova Plc, noted that the deal would enable the firm to harness opportunities in the gas industry. He stated that the combination of Ardova and Powergas gives them the infrastructure, reach, and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria. The focus now is on execution, expanding compression capacity, and connecting more industries and fleets to a reliable domestic energy source.
Vice-Chairman of Powergas, Pulak Sen, expressed excitement about the next chapter, stating that Ardova’s national reach and Powergas’s compression backbone are a natural fit. He added that together, they can expand into new markets and geographies and play a leading role in delivering Nigeria’s Auto-Gas vision. Sam Senbanjo, Partner at A.P. Moller Capital, highlighted that they supported Powergas through development, construction, commissioning, and scale-up, helping customers access domestic gas beyond the reach of the pipeline network.
The enlarged platform is expected to position Ardova as a leading domestic gas infrastructure and monetization partner for upstream producers, with plans to expand compression capacity across viable gas-producing corridors and extend the business into wider West African markets over time. The deal’s completion is subject to customary closing conditions, including regulatory and third-party approvals. Upon completion, Ardova and Diadem Energy will support Powergas in its next phase of growth.
Key points
- Ardova-led consortium to acquire Powergas, expanding its presence in Nigeria's gas industry.
- The acquisition aligns with Nigeria's Decade of Gas initiative and President Bola Tinubu's Presidential Initiative on Compressed Natural Gas and Electric Vehicles.
- The deal is expected to close by the end of 2026, subject to regulatory and third-party approvals.
