A.P. Moller Capital announced on Friday that its Africa Infrastructure Fund I and Impala Energy Holdings have entered into an agreement with a consortium led by Ardova Plc 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 add a natural gas platform to Ardova's existing petroleum products and LPG businesses.
Ardova Plc is a Nigerian integrated energy and infrastructure company with a nationwide footprint across various sectors, including retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants, and logistics. The company was founded in 2013 by the Clean Energy Group, which pioneered a model of taking natural gas beyond the pipeline to supply industrial and power customers through compression facilities and virtual pipeline networks.
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 project commenced operations in 2020, with its Ebedei compression plant inaugurated in 2021. Since then, it has expanded distribution across South-east, South-south, and South-west Nigeria, creating 175 direct jobs and many more across its supply chain in Nigeria.
The acquisition will combine Powergas' gas sourcing relationships, compression infrastructure, and industrial customer base with Ardova's nationwide retail, logistics, and distribution network. Ardova plans to deploy CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months. This expansion aims to increase access to gas for commercial fleets and motorists while supporting Nigeria's drive to increase domestic gas utilisation.
The enlarged platform is expected to position 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. This move supports flare reduction and unlocks 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, combining Nigerian market knowledge with energy distribution and logistics capabilities. The acquisition is expected to have a significant impact on Nigeria's energy sector, providing a cleaner and more efficient source of energy for industrial and commercial customers.
The transaction also highlights the growing importance of Compressed Natural Gas in Nigeria's energy mix. With the country's focus on increasing domestic gas utilisation, Ardova's acquisition of Powergas is poised to play a significant role in shaping the future of Nigeria's energy landscape. As the largest CNG producer in Africa, Powergas is well-positioned to support Ardova's ambitious plans for expansion and growth in the region.
Key points
- Ardova Plc leads consortium to acquire Powergas, Africa's largest Compressed Natural Gas producer.
- The acquisition will combine Powergas' gas sourcing relationships with Ardova's nationwide retail, logistics, and distribution network.
- Ardova plans to deploy CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months.
