By Kehinde Ibrahim, Lagos
ARDOVA Plc is set to make a major push into Nigeria’s compressed natural gas (CNG) market as it leads a consortium seeking to acquire 100 per cent of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited.
The proposed acquisition will give the integrated energy company a foothold in gas compression and virtual pipeline distribution, strengthening its existing operations in petroleum products, LPG, aviation fuel, lubricants, shipping and logistics.
The consortium, which includes Diadem Energy, is acquiring Powergas from A.P. Moller Capital, through its Africa Infrastructure Fund I (AIF I), and Impala Energy Holdings.
The transaction is expected to be completed around the end of 2026, subject to customary closing conditions, including regulatory approvals and other third-party consents.
A major component of Ardova’s post-acquisition strategy is the rollout of CNG infrastructure across its nationwide retail network. The company is targeting 100 CNG refuelling sites within 24 months, a move that could significantly expand access to natural gas for motorists, commercial fleets and industrial users.
The planned expansion comes as Nigeria seeks to increase domestic gas utilisation and promote CNG as an alternative fuel for transportation, particularly following the Federal Government’s push to develop a broader gas-based energy system.
Powergas, established in 2013 by the Clean Energy Group, pioneered a model for supplying natural gas to customers beyond the reach of Nigeria’s conventional pipeline infrastructure.
Through compression facilities and virtual pipeline networks, the company transports natural gas to industrial and power customers in locations without direct access to fixed gas pipelines.
Its Powergas Ebedei Limited operation also includes a flare gas monetisation project, through which gas that would otherwise be flared is captured and supplied for productive commercial and industrial use.
A.P. Moller Capital invested in PEL through Impala in April 2019, making it the first investment of its Africa Infrastructure Fund I.
The investment supported the development, construction, commissioning and expansion of the business in partnership with local stakeholders and management.
PEL commenced operations in 2020, while its Ebedei compression plant was commissioned in 2021. Powergas subsequently expanded its distribution network across the South-East, South-South and South-West regions.
The company said its operations have also contributed to reducing the use of diesel among some industrial and commercial customers by providing compressed natural gas as an alternative energy source.
Powergas currently employs 175 people directly, with additional jobs supported through its supply chain.
For Ardova, the proposed acquisition is expected to combine Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base with Ardova’s established retail, logistics and distribution network.
The company also plans to expand Powergas’ compression capacity in viable gas-producing corridors, with the objective of creating additional offtake opportunities for associated and non-associated gas.
The strategy could strengthen connections between upstream gas producers and industrial, commercial and transportation customers while supporting efforts to reduce gas flaring.
Executive Chairman of Ardova Plc, Dr. AbdulWasiu Sowami, said the company expected natural gas to play a central role in Nigeria’s future energy development.
“Nigeria’s next era of energy development will be built on gas, and it will be built at scale. Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid,” Sowami said.
He said Ardova would combine its nationwide distribution network and customer relationships with Powergas’ existing gas infrastructure.
“Together, we intend to connect Nigeria’s abundant gas resources to industry, power and transportation, supporting President Bola Ahmed Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) and the Federal Government’s Decade of Gas programme,” he said.
Sowami added that the company’s objective was to provide more affordable, lower-emission energy and contribute to lower transportation costs while building a gas platform capable of expanding beyond Nigeria.
Managing Director of Ardova, Dr. Abiola Babatunde-Ojo, said the transaction would provide the infrastructure and reach needed to scale up the company’s gas operations.
“This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria. Our focus now is execution: expanding compression capacity, bringing CNG into our retail network and connecting more industries and fleets to a reliable domestic energy source,” she said.
She said the company intended to develop a platform capable of serving customers at scale while expanding in line with Nigeria’s long-term energy needs.
Powergas Vice-Chairman, Pulak Sen, said the company had grown from its original objective of taking natural gas beyond the pipeline network into an operational CNG platform.
“Powergas began in 2013 with the Clean Energy Group’s vision of taking gas beyond the pipeline, and A.P. Moller Capital’s partnership helped us scale it,” Sen said.
He said Ardova’s national distribution network complemented Powergas’ compression infrastructure.
“Ardova’s national reach and our compression backbone are a natural fit – together, we can expand into new markets and geographies and play a leading role in delivering Nigeria’s Auto-Gas vision,” he said.
A.P. Moller Capital Partner, Sam Senbanjo, said the investment had helped PEL develop from an early-stage project into an operational compressed natural gas business.
“Since 2019, PEL has progressed from concept to a fully operational compressed-natural-gas business. Working alongside our partners, management and employees, we supported the business through development, construction, commissioning and scale-up,” he said.
He said the company had helped customers access domestic natural gas beyond the existing pipeline network and expressed confidence in Ardova and Diadem’s ability to support Powergas’ next phase of expansion.
The proposed acquisition also builds on Diadem Energy’s existing relationship with Powergas, having served as its virtual-pipeline logistics partner.
Chairman of Diadem Group, the parent company of Diadem Energy, Dr. George Eluwa, said the company had witnessed the potential of Powergas’ business model through its existing relationship.
“Having worked closely with Powergas as its virtual-pipeline logistics partner, we have seen first-hand the transformative potential of taking natural gas beyond the conventional pipeline network,” Eluwa said.
He said the transaction would enable Diadem to play a greater role in the development of Nigeria’s gas infrastructure and energy market.
The acquisition comes at a time when the Federal Government is promoting greater domestic utilisation of Nigeria’s natural gas resources and encouraging investment in infrastructure to support CNG adoption.
Ardova said its longer-term plans include expanding Powergas’ operations into other West African markets, potentially creating a regional gas infrastructure platform.
The transaction remains subject to regulatory and other customary approvals, with completion targeted for the end of 2026.
