A consortium led by Ardova Plc has entered into an agreement to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas. Powergas is one of Africa's largest Compressed Natural Gas (CNG) 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 position Ardova as a leading domestic gas infrastructure and gas monetization partner for upstream producers.
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 monetization project, developed with investment from A.P. Moller Capital, converts otherwise flared gas into productive energy for commercial and industrial use. Powergas commenced operations in 2020, with its Ebedei compression plant commissioned in 2021.
The acquisition adds a natural gas platform to Ardova's established petroleum products and LPG businesses. Ardova Plc is a Nigerian integrated energy and infrastructure company with a nationwide footprint across retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants, and logistics. The company plans to deploy CNG infrastructure across its retail network and is targeting 100 CNG refueling sites nationwide within 24 months.
Powergas' environmental and social impact is twofold. The company 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. This reduces emissions both where the gas is produced and where it is used. The business has also created 175 direct jobs and many more across its supply chain in Nigeria.
Following completion, Ardova intends to expand Powergas' compression capacity across viable gas-producing corridors. This will create firm offtake for associated and non-associated gas, supporting flare reduction and unlocking further investment across the gas value chain. Over time, Ardova intends to extend the platform into the wider West African market.
The sale represents the next stage in Powergas' development. Ardova, with its partner Diadem, combines Nigerian market knowledge with energy distribution and logistics capabilities. The company is well-positioned to build on the operational business developed during A.P. Moller Capital's ownership. Completion is expected around the end of 2026, subject to customary closing conditions.
Dr. AbdulWasiu Sowami, Executive Chairman of Ardova Plc, stated that Nigeria's next era of energy development will be built on gas, and it will be built at scale. The acquisition will support President Bola Ahmed Tinubu's Presidential Initiative on Compressed Natural Gas and Electric Vehicles and the federal government's Decade of Gas program.
Key points
- Ardova-led consortium to acquire Powergas, expanding Nigeria's compressed natural gas infrastructure
- The acquisition to combine Powergas' gas sourcing relationships with Ardova's nationwide retail, logistics, and distribution network
- Ardova to deploy CNG infrastructure across its retail network, targeting 100 CNG refueling sites nationwide within 24 months
