A.P. Moller Capital has announced 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. Powergas supplies natural gas to industrial and power customers through compression facilities and virtual pipeline networks, enabling delivery beyond the fixed pipeline grid.
The 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. A.P. Moller Capital invested in Powergas through Impala, which was its first investment in April 2019. The company worked alongside local partners and management to support Powergas through development, construction, commissioning, and operational scale-up.
Powergas 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. The company's environmental and social impact is twofold, capturing gas that would otherwise be flared and supplying it to industrial and commercial customers, reducing emissions both where the gas is produced and where it is used.
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 and is targeting 100 CNG refuelling sites nationwide within 24 months. This expansion will support Nigeria's drive to increase domestic gas utilisation and provide access to gas for commercial fleets and motorists.
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 will support flare reduction and unlock 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 positive impact on the Nigerian energy sector, creating opportunities for growth and development.
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.
