The proposed acquisition of Powergas by the Ardova Plc–Diadem Energy consortium is set to open a new phase in Nigeria’s compressed natural gas (CNG) market. The investors have outlined plans to expand gas infrastructure, widen access to customers, and deepen the use of domestic gas across transportation, industry, and power. This move is expected to increase domestic gas utilization and expand CNG infrastructure as part of efforts to reduce dependence on petrol and diesel for transportation.
The transaction, which involves the acquisition of 100 per cent of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, is expected to be completed by the end of 2026, subject to regulatory and other third-party approvals. The consortium brings together three complementary components: Powergas’ gas sourcing relationships and compression infrastructure, Diadem’s virtual-pipeline logistics capabilities, and Ardova’s nationwide retail, logistics, and distribution network.
Diadem Group Chairman, Dr George Eluwa, noted that the acquisition represents a continuation of a relationship that has already demonstrated the potential of a “virtual pipeline” model. In 2025, Diadem’s fleet completed over 6,500 trips, covering more than 2.7 million kilometers and delivering over 51 million standard cubic meters of gas. This logistics operation resulted in the avoidance of over 500 tonnes of carbon dioxide emissions compared to diesel-based transportation.
Ardova Plc Chairman, Dr AbdulWasiu Sowami, stated that the attraction of Powergas goes beyond the physical assets being acquired. The consortium is particularly interested in the people, operational culture, and reputation developed by Powergas over the years. Sowami emphasized that customers have come to depend on Powergas for the safe and timely delivery of gas, describing the company’s ability to build a virtual pipeline as an achievement rooted in its operational culture.
The transaction has implications beyond the automotive market, as the consortium intends to expand Powergas’ compression capacity across viable gas-producing corridors. This expansion could provide a commercial route for gas that might otherwise remain stranded or be flared, while supporting investment across the gas value chain. The move aligns with Nigeria’s wider push to convert its substantial gas resources into productive economic activity.
Ardova Plc plans to deploy CNG infrastructure across its retail network, targeting 100 CNG refueling sites nationwide within 24 months. This plan comes as government-backed CNG infrastructure is also expanding, with four CNG projects commissioned across Lagos, Abuja, and Owerri under the Midstream and Downstream Gas Infrastructure Fund. The private-sector expansion places greater emphasis on execution, particularly the availability of gas, compression capacity, and transportation infrastructure.
The next phase for Powergas presents a question larger than ownership: how effectively can existing infrastructure be scaled to connect more of Nigeria’s gas resources with businesses and consumers that need dependable energy? The Federal Government has recently highlighted a renewed drive to unlock gas resources for industrialization, power generation, investment, and job creation, including the September 2026 Final Investment Decision on the $800 million Ima Gas Project.
Key points
- Ardova Plc targets 100 CNG refueling sites nationwide within 24 months.
- The acquisition is expected to be completed by the end of 2026, subject to regulatory and other third-party approvals.
- The transaction brings together Powergas’ gas sourcing relationships, Diadem’s logistics capabilities, and Ardova’s nationwide retail network.
