Reported by Weng Patrick Atokor l Journalist at Weng Global
A consortium led by Nigerian energy company Ardova Plc has agreed to acquire 100 per cent of Powergas, one of Africa’s largest compressed natural gas (CNG) producers and virtual pipeline distributors, in a transaction expected to strengthen Ardova’s position in Nigeria’s expanding gas and alternative-fuel market.
The agreement, announced on September 25, 2026, involves Ardova and Diadem Energy acquiring Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited from A.P. Moller Capital and Impala Energy Holdings.
The transaction is expected to close around the end of 2026, subject to customary closing conditions, including regulatory and other third-party approvals. Financial terms of the agreement have not been disclosed.
Ardova expands into natural gas
The acquisition will add a dedicated natural-gas platform to Ardova’s existing energy operations, which include retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants and logistics.
Powergas operates a “virtual pipeline” model, allowing compressed natural gas to be transported by road to industrial, commercial and power customers that are outside the reach of Nigeria’s conventional fixed pipeline network.
The company says it has more than 10 million standard cubic metres per month of CNG production capacity and has completed more than 100,000 CNG deliveries.
For Ardova, the deal provides access to Powergas’ compression infrastructure, gas-sourcing relationships and existing industrial customer base while potentially allowing the company to use its own national distribution and retail network to broaden access to CNG.
Plans for 100 CNG refuelling sites
Following completion, Ardova plans to introduce CNG infrastructure across its retail network and is targeting 100 CNG refuelling sites across Nigeria within 24 months.
The planned expansion is intended to increase access to CNG for motorists and commercial fleets while also supporting the wider development of Nigeria’s domestic gas market.
Ardova Executive Chairman AbdulWasiu Sowami said the company sees natural gas as an important part of Nigeria’s next phase of energy development and described Powergas’ compression infrastructure and Ardova’s national distribution network as complementary assets.
Managing Director of Ardova, Abiola Babatunde-Ojo, said the immediate focus would be on expanding compression capacity, integrating CNG into the company’s retail network and connecting more industries and fleets to domestic gas.
Powergas’ role in Nigeria’s gas market
Powergas was founded in 2013 by the Clean Energy Group, which developed the business around the idea of taking natural gas to customers beyond conventional pipeline infrastructure.
Its Ebedei operation in Delta State is particularly significant because it is designed to monetise gas that might otherwise be flared.
Powergas Ebedei Limited began operations in 2020, while its Ebedei compression plant was commissioned in 2021. Under A.P. Moller Capital’s ownership, the business expanded its distribution network across parts of southern Nigeria.
The company supplies compressed natural gas to industrial and commercial users, including customers that can use gas as an alternative to diesel-powered generation and other fossil-fuel applications.
According to information released around the transaction, Powergas has created 175 direct jobs, in addition to employment generated across its wider supply chain.
A.P. Moller Capital exits its investment
The transaction also marks the planned exit of A.P. Moller Capital from its investment in Powergas.
A.P. Moller Capital invested in Powergas Ebedei through Impala Energy Holdings in April 2019, describing the investment as the first investment made by its Africa Infrastructure Fund I.
The investment supported the development, construction, commissioning and subsequent scale-up of the Ebedei business.
A.P. Moller Capital said Powergas progressed from development to full production during its ownership, while expanding access to domestic gas and supporting efforts to reduce gas flaring.
The company said it believes Ardova and Diadem are positioned to take Powergas into its next stage of development.
Diadem Energy’s role
Diadem Energy, which is part of the acquiring consortium, already has a relationship with Powergas through its role as a virtual-pipeline logistics partner.
George Eluwa, chairman of Diadem Group, said the company’s experience working with Powergas had given it direct exposure to the potential of transporting natural gas beyond Nigeria’s conventional pipeline infrastructure.
The partnership therefore brings together Powergas’ gas compression and distribution platform with Ardova’s wider energy and logistics network and Diadem’s experience in gas logistics.
Implications for Nigeria’s CNG market
The planned acquisition comes as Nigeria seeks to increase domestic gas utilisation and expand CNG infrastructure.
CNG has gained greater attention as Nigeria looks to develop alternatives to conventional petrol and diesel use, particularly in transportation and industrial applications.
The transaction could therefore give Ardova a larger role in the country’s emerging CNG infrastructure by combining production and compression capacity with an established downstream distribution network.
Ardova has said its plans include expanding Powergas’ compression capacity in viable gas-producing corridors. The company also intends to develop the enlarged business as a gas infrastructure and monetisation platform capable of serving upstream gas producers and industrial customers.
Over time, Ardova has indicated that it intends to expand the platform beyond Nigeria into the wider West African market.
Potential impact on gas flaring and energy access
One of the notable elements of the Powergas model is its use of gas that would otherwise have limited commercial value or could be flared.
By capturing and compressing natural gas for distribution to customers, the business provides a route for gas to reach users without requiring a direct connection to the national pipeline network.
A.P. Moller Capital said its investment helped increase access to reliable domestic gas while supporting reductions in gas flaring and enabling customers to replace some diesel-fired power generation.
However, the broader environmental impact of increased natural-gas use will depend on factors including methane emissions, the efficiency of gas production and distribution, and the extent to which CNG replaces higher-emission fuels in specific applications.
What happens next
The acquisition has not yet been completed.
Completion is expected around the end of 2026, subject to regulatory approvals and other customary closing conditions.
If completed, Ardova will begin integrating Powergas into its broader energy platform while pursuing its stated plans for additional CNG infrastructure.
The proposed 100 CNG refuelling sites within 24 months will be one of the key milestones to watch as the enlarged business takes shape.
The transaction also provides an indication of how Nigeria’s downstream energy companies are positioning themselves around natural gas as the country seeks to increase domestic gas consumption, develop alternative transportation fuels and expand energy infrastructure.
For consumers and businesses, the significance of the deal will ultimately depend on how quickly the planned infrastructure is delivered, the availability and affordability of CNG, and the ability of the new platform to connect more customers to reliable domestic gas supplies.
Weng Global – Stories beyond borders
Sources
- A.P. Moller Capital — announcement of the agreement to sell Powergas to the Ardova-led consortium.
- Powergas — company information on its CNG production, virtual pipeline operations and distribution network.
- BusinessDay — report on the Ardova-led acquisition and planned CNG expansion.
- The Guardian Nigeria — report on the acquisition agreement.
- Punch — additional reporting on Ardova’s planned expansion of its CNG business.
