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 producers and virtual pipeline distributors. The acquisition will combine Powergas' gas sourcing relationships, compression infrastructure, and industrial customer base with Ardova's nationwide retail, logistics, and distribution network.
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 transaction adds a natural gas platform to Ardova's established petroleum products and LPG businesses. Powergas was founded in 2013 by the Clean Energy Group, which pioneered its model of taking natural gas beyond the pipeline.
Powergas' 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. The business has created 175 direct jobs and many more across its supply chain in Nigeria. Powergas commenced operations in 2020, with its Ebedei compression plant commissioned in 2021.
The acquisition will enable Ardova to deploy CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months. This expansion will support Nigeria's drive to increase domestic gas utilisation and position Ardova as a leading domestic gas infrastructure and gas monetisation partner for upstream producers.
Dr. AbdulWasiu Sowami, Executive Chairman of Ardova Plc, stated that Nigeria's next era of energy development will be built on gas and at scale. The combination of Powergas' compression backbone and Ardova's national distribution network will enable the company to connect Nigeria's abundant gas resources to industry, power, and transportation.
The sale represents the next stage in Powergas' development, with Ardova and its partner Diadem bringing Nigerian market knowledge, energy distribution, and logistics capabilities to the business. Completion of the acquisition is expected around the end of 2026, subject to customary closing conditions.
The enlarged platform is expected to position Ardova to become a leading player in Nigeria's energy sector, with plans to extend the platform into the wider West African market. Ardova intends to expand Powergas' compression capacity across viable gas-producing corridors, creating firm offtake for associated and non-associated gas.
Key points
- Ardova-led consortium to acquire Powergas, Africa's largest CNG producer.
- Acquisition to combine Powergas' gas sourcing relationships with Ardova's nationwide retail, logistics, and distribution network.
- Ardova targets 100 CNG refuelling sites nationwide within 24 months.
