Ardova-led consortium to acquire Powergas

A consortium led by Ardova Plc and including Diadem Energy has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas, in a transaction expected to close by the end of 2026.

The deal, announced on Friday by A.P. Moller Capital, will see the Danish investor exit its stake in one of Africa’s largest compressed natural gas producers and virtual pipeline distributors.

Powergas, founded in 2013 by the Clean Energy Group, pioneered the “virtual pipeline” model—compressing natural gas and transporting it by road to industrial, commercial and power customers beyond the reach of Nigeria’s fixed pipeline grid.

Its flagship Ebedei flare gas monetisation project in Delta State, developed with A.P. Moller Capital’s backing since 2019, converts otherwise flared gas into usable energy and has helped cut emissions while supplying firms that would otherwise rely on diesel generators.

The company now operates four mother stations—in Ikorodu (Lagos), Ogbele (Rivers), Ebedei (Delta) and Ore (Ondo)—and a fleet of more than 250 tube skids, having delivered over 600 million standard cubic metres of CNG as at December 2025.

For Ardova, the acquisition adds a strategic gas platform to its existing downstream portfolio of petroleum products, LPG, aviation fuel, lubricants, shipping and logistics.

The Lagos-based integrated energy company, which traces its roots to BP Nigeria in 1964, plans to deploy CNG infrastructure across its nationwide retail network, targeting 100 CNG refuelling sites within 24 months.

The expansion aligns with the federal government’s Decade of Gas initiative, launched in 2021 to transform Nigeria into a gas-powered economy by 2030, and President Bola Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles, which seeks to lower transport costs and emissions by promoting auto-gas adoption.

“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. Ardova brings a national distribution network, deep customer relationships, and the ability to invest for the long term.

“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 and the federal government’s Decade of Gas programme.

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“Our ambition is to deliver more affordable, lower-emission energy and lower transportation costs for Nigerians, while building a gas platform with relevance far beyond Nigeria,” explained the Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami.

The Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, noted that the deal would enable the firm to harness the opportunities in the gas industry.

“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. We are building a platform that will serve customers at scale today and grow with Nigeria’s energy needs for decades to come,” he asserted.

“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. We are deeply grateful to both. 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. We are very excited about the next chapter,” Vice-Chairman of Powergas, Pulak Sen, added.

According to a Partner at A.P. Moller Capital, Sam Senbanjo, 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, helping customers access domestic gas beyond the reach of the pipeline network. We are proud of what has been achieved and believe Ardova and Diadem are well placed to support Powergas in its next phase of growth,” he stated.

“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. For Diadem Group, this is the continuation of a journey that began on the ground with Powergas, and a real opportunity to contribute to Nigeria’s energy future,” Chairman of Diadem Group, the parent company of Diadem Energy, George Eluwa, highlighted.

The enlarged platform is expected to position Ardova as a leading domestic gas infrastructure and monetisation partner for upstream producers, with plans to expand compression capacity across viable gas-producing corridors and extend the business into wider West African markets over time.

The deal’s completion is subject to customary closing conditions, including regulatory and third-party approvals.