Ardova Plc, in a consortium with Diadem Energy, has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, known as Powergas. The deal, announced 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. The acquisition is expected to close by the end of 2026.
Powergas was founded in 2013 by the Clean Energy Group and pioneered the virtual pipeline model of compressing natural gas and transporting it by road to industrial, commercial, and power customers beyond 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.
Powergas currently operates four mother stations in Ikorodu, Lagos; Ogbele, Rivers; Ebedei, Delta; and Ore, Ondo. The company also has a fleet of more than 250 tube skids and had delivered over 600 million standard cubic metres of CNG as of December 2025. The acquisition will add a strategic gas platform to Ardova's existing downstream portfolio covering 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 initiative seeks to expand the use of gas and promote cleaner and more affordable transportation.
The Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami, said the deal would help expand access to natural gas across the country. "Nigeria's next era of energy development will be built on gas, and it will be built at scale," Sowami said. The acquisition will enable Ardova to harness opportunities in the gas industry and connect Nigeria's abundant gas resources to industry, power, and transportation.
The Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, said the combination of Ardova and Powergas would give the company the infrastructure, reach, and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria. The company plans to focus on execution, expanding compression capacity, bringing CNG into its retail network, and connecting more industries and fleets to a reliable domestic energy source.
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 Global Investments Nigeria Limited
- The acquisition will add a strategic gas platform to Ardova's existing downstream portfolio
- Ardova plans to establish 100 CNG refuelling sites within 24 months
