The Ardova Plc–Diadem Energy consortium has announced plans to expand Compressed Natural Gas (CNG) infrastructure across Nigeria. This follows their proposed acquisition of Powergas, with the goal of establishing 100 CNG refuelling stations within the next 24 months. The consortium also aims to increase Powergas' gas compression capacity and extend its virtual pipeline network to more gas-producing corridors. This move is part of efforts to expand domestic gas utilisation across the industrial, power, and transportation sectors.
The proposed acquisition of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited was announced at a staff townhall meeting held at the Radisson Blu Hotel, Ikeja, Lagos. Under the transaction, Ardova and Diadem Energy are set to acquire 100 per cent of the two Powergas entities from Africa Infrastructure Fund I, managed by A.P. Moller Capital, through Impala Energy Holdings. The completion of the transaction is expected by the end of 2026, subject to regulatory and other required approvals.
Chairman of Diadem Group, Dr George Eluwa, highlighted that the proposed acquisition would build on the relationship between Diadem and Powergas, which began in 2022. Diadem became a virtual-pipeline logistics partner to Powergas and deployed CNG trucks within the Powergas network. In 2025, the partnership recorded over 6,500 trips, covering more than 2.7 million kilometres and delivering over 51 million standard cubic metres of gas. This operation helped avoid more than 500 tonnes of carbon dioxide emissions compared to diesel-based transportation.
Chairman of Ardova Plc, Dr AbdulWasiu Sowami, noted that the consortium's interest in Powergas was driven by its physical assets, workforce, and operational reputation. Powergas has built customer confidence through its ability to deliver gas safely and reliably. The company's virtual pipeline model has demonstrated the potential to move natural gas to areas where conventional pipeline infrastructure is unavailable. Ardova intends to build on the existing platform by combining Powergas' compression and gas supply capabilities with Diadem's logistics operations and Ardova's nationwide distribution network.
The planned expansion of CNG infrastructure is expected to include the integration of CNG facilities into Ardova's existing retail network. Ardova's Managing Director, Dr Abiola Babatunde-Ojo, stated that the company's immediate focus would be on implementing the expansion plans. This includes increasing compression capacity, incorporating CNG into its retail outlets, and connecting more industries and vehicle fleets to domestic gas. The consortium also intends to expand Powergas' compression infrastructure along viable gas-producing corridors.
The move is expected to provide additional offtake opportunities for gas producers and support efforts to reduce gas flaring. This will be achieved by creating infrastructure through which gas can be processed, compressed, and transported to commercial and industrial users. Powergas, founded in 2013 by the Clean Energy Group, pioneered the supply of compressed natural gas to industrial and power customers through compression facilities and road-based distribution.
The proposed acquisition comes as Nigeria continues to pursue increased domestic utilisation of its natural gas resources and greater adoption of CNG as an alternative fuel. The consortium's longer-term objective is to expand the platform beyond Nigeria, with West Africa identified as a potential future market.
Key points
- The Ardova Plc-Diadem Energy consortium aims to establish 100 CNG refuelling stations within 24 months.
- The proposed acquisition of Powergas is expected to be completed by the end of 2026.
- The expansion plans include integrating CNG facilities into Ardova's existing retail network and increasing compression capacity.
