A consortium led by Ardova Plc and Diadem Energy has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, known as Powergas. Powergas is one of Africa's largest Compressed Natural Gas producers and virtual pipeline distributors. The acquisition will combine Powergas' gas sourcing relationships and compression infrastructure with Ardova's nationwide retail, logistics, and distribution network. This move is expected to expand access to gas for commercial fleets and motorists in Nigeria.
Powergas was founded in 2013 by the Clean Energy Group, which pioneered a model of taking natural gas beyond the pipeline. The company supplies natural gas to 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 otherwise flared gas into productive energy for commercial and industrial use. Powergas has created 175 direct jobs and many more across its supply chain in Nigeria.
The acquisition will enable Ardova to deploy CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months. This expansion supports Nigeria's drive to increase domestic gas utilisation and positions Ardova to become a leading domestic gas infrastructure and gas monetisation partner for upstream producers. Ardova intends to expand Powergas' compression capacity across viable gas-producing corridors, creating firm offtake for associated and non-associated gas.
AbdulWasiu Sowami, executive chairman of Ardova Plc, stated that Nigeria's next era of energy development will be built on gas and at scale. He emphasized that the combination of Powergas' compression backbone and Ardova's national distribution network will connect Nigeria's abundant gas resources to industry, power, and transportation. This supports President Bola Ahmed Tinubu's Presidential Initiative on Compressed Natural Gas and Electric Vehicles and the federal government's Decade of Gas programme.
Abiola Babatunde-Ojo, managing director of Ardova Plc, highlighted that the combination gives the company the infrastructure, reach, and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria. The focus now is on execution, including expanding compression capacity, bringing CNG into the retail network, and connecting more industries and fleets to a reliable domestic energy source.
Pulak Sen, vice-chairman of Powergas, expressed gratitude to A.P. Moller Capital for its partnership and highlighted that Ardova's national reach and Powergas' compression backbone are a natural fit. He emphasized that together, they can expand into new markets and geographies and play a leading role in delivering Nigeria's Auto-Gas vision.
Completion of the acquisition is expected around the end of 2026, subject to customary closing conditions, including receipt of required regulatory and other third-party approvals. The sale represents the next stage in Powergas' development, with Ardova and Diadem combining Nigerian market knowledge with energy distribution and logistics capabilities.
Key points
- Ardova-led consortium to acquire Powergas, expanding Nigeria's CNG infrastructure
- Acquisition to combine Powergas' gas sourcing relationships with Ardova's nationwide retail network
- Ardova targets 100 CNG refuelling sites nationwide within 24 months
