Ardova Plc, a leading energy company in Nigeria, has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas, in a deal expected to close by the end of 2026. The acquisition, facilitated by A.P. Moller Capital, will see the Danish investment firm exit its stake in Powergas, one of Africa's largest compressed natural gas producers and virtual pipeline distributors. This strategic move is set to enhance Ardova's presence in the gas industry.
Powergas, founded in 2013 by the Clean Energy Group, pioneered the virtual pipeline model of compressing natural gas and transporting it by road to industrial, commercial, and power customers beyond the reach of Nigeria's fixed pipeline network. The company's flagship Ebedei flare gas monetisation project in Delta State was developed with A.P. Moller Capital's backing from 2019. This project converts gas that would otherwise be flared into usable energy while supplying businesses that would otherwise depend on diesel generators.
The acquisition will add a strategic gas platform to Ardova's existing downstream portfolio, which covers petroleum products, LPG, aviation fuel, lubricants, shipping, and logistics. Ardova plans to deploy CNG infrastructure across its nationwide retail network, with a target of establishing 100 CNG refuelling sites within 24 months. This expansion aligns with the Federal Government's Decade of Gas initiative and President Bola Ahmed Tinubu's Presidential Initiative on Compressed Natural Gas and Electric Vehicles.
The deal has garnered support from key stakeholders, including the Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami, who emphasized that Nigeria's next era of energy development will be built on gas and at scale. He highlighted that Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid, while Ardova brings a national distribution network and deep customer relationships.
Dr Abiola Babatunde-Ojo, Managing Director of Ardova Plc, noted that the acquisition will enable the company to harness opportunities in the gas industry. He emphasized that the combination of Ardova and Powergas will provide 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 and connecting more industries and fleets to a reliable domestic energy source.
Other stakeholders, including Pulak Sen, Vice-Chairman of Powergas, and Sam Senbanjo, A.P. Moller Capital Partner, have expressed their optimism about the deal. They believe that Ardova's national reach and Powergas' compression infrastructure will provide a platform for further expansion into new markets and geographies. George Eluwa, Chairman of Diadem Group, also welcomed the acquisition, citing the potential of Powergas to contribute to Nigeria's energy future.
The enlarged platform is expected to position Ardova as a major domestic gas infrastructure and monetisation partner for upstream producers, with plans to expand compression capacity across viable gas-producing corridors. The consortium also plans to explore opportunities to extend the business into wider West African markets. Completion of the transaction remains subject to customary closing conditions, including regulatory and third-party approvals.
Key points
- Ardova Plc-led consortium to acquire Powergas to expand CNG business.
- The acquisition aligns with the Federal Government's Decade of Gas initiative and President Bola Ahmed Tinubu's Presidential Initiative on Compressed Natural Gas and Electric Vehicles.
- Ardova plans to establish 100 CNG refuelling sites within 24 months.
