A consortium led by Ardova Plc, in collaboration with Diadem Energy, has agreed to acquire 100% of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL). The agreement was made with A.P. Moller Capital, through its Africa Infrastructure Fund I (AIF I), and Impala Energy Holdings. Powergas is a major player in Nigeria's compressed natural gas (CNG) industry, supplying industrial, commercial, and power customers.
Powergas was founded in 2013 by the Clean Energy Group and has since become one of Africa's largest CNG producers and virtual pipeline distributors. The company's operations include the production and distribution of CNG to customers beyond the reach of the conventional pipeline network. Its Ebedei project in Delta State was developed to monetise gas that would otherwise have been flared. The project commenced operations in 2020, and its Ebedei compression plant was commissioned in 2021.
The acquisition is expected to be completed by the end of 2026, subject to regulatory and other required third-party approvals. Ardova said the acquisition would add natural gas operations to its existing businesses in petroleum products, liquefied petroleum gas (LPG), shipping, aviation fuel, lubricants, and logistics. The company plans to deploy CNG infrastructure across its retail network, with a target of 100 CNG refuelling sites nationwide within 24 months of the acquisition.
Executive Chairman of Ardova Plc, AbdulWasiu Sowami, said the acquisition would enable the company to expand its activities in the gas sector. He stated that Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid. Ardova brings a national distribution network, deep customer relationships, and the ability to invest for the long term.
Managing Director of Ardova, Abiola Babatunde-Ojo, said the company would focus on expanding compression capacity and introducing CNG facilities into its retail network. The company plans to expand Powergas' compression capacity in gas-producing areas and increase its offtake of associated and non-associated gas. This move aims to connect Nigeria's abundant gas resources to industry, power, and transportation.
The transaction will transfer ownership of Powergas from A.P. Moller Capital and its investment partners to the Ardova-led consortium, subject to the completion conditions. A.P. Moller Capital invested in PEL through Impala in April 2019. Powergas operates four mother stations and has a fleet of more than 250 tube skids. The company has expanded its distribution network across Southeast, Southsouth, and Southwest Nigeria.
Other stakeholders, including Vice-Chairman of Powergas, Pulak Sen, and Chairman of Diadem Group, George Eluwa, expressed their optimism about the acquisition. Sam Senbanjo, a partner at A.P. Moller Capital, said the fund had supported PEL through its development, construction, commissioning, and operational scale-up since 2019. The acquisition is expected to enable Powergas to expand into new markets and provide customers with access to domestic gas beyond the reach of the pipeline network.
Key points
- Ardova Plc leads consortium to acquire 100% of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited.
- The acquisition is expected to be completed by the end of 2026, subject to regulatory approvals.
- Ardova plans to deploy CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months.
