LAGOS — Ardova Plc, in partnership with Diadem Energy, has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, in a transaction that could significantly expand the Nigerian energy company’s footprint in compressed natural gas (CNG) infrastructure.
The acquisition, announced by A.P. Moller Capital, is expected to close by the end of 2026, subject to regulatory and other customary approvals.
The transaction will also mark the exit of the Danish investment firm from Powergas, one of Nigeria’s major compressed natural gas producers and virtual-pipeline operators.
Ardova targets nationwide CNG rollout
For Ardova, the acquisition provides a strategic entry point into gas infrastructure and strengthens its existing downstream energy portfolio, which spans petroleum products, liquefied petroleum gas, aviation fuel, lubricants, shipping and logistics.
The company plans to leverage Powergas’ infrastructure and expertise to accelerate the deployment of CNG facilities across its nationwide retail network, with a target of 100 CNG refuelling sites within 24 months.
Ardova Executive Chairman, AbdulWasiu Sowami, said the transaction would combine Powergas’ gas-compression infrastructure with Ardova’s national distribution network and customer base.
“Nigeria’s next era of energy development will be built on gas, and it will be built at scale,” Sowami said.
He said the combined business would seek to connect Nigeria’s gas resources to industrial, power and transportation customers while supporting the Federal Government’s CNG and broader gas-development initiatives.
The strategy is also aligned with Nigeria’s Decade of Gas programme, launched in 2021, and the government’s efforts to expand CNG as an alternative fuel for transportation.
Powergas brings virtual-pipeline infrastructure
Founded in 2013 by the Clean Energy Group, Powergas pioneered the use of a virtual pipeline model in Nigeria, compressing natural gas and transporting it by road to industrial, commercial and power customers located beyond the reach of conventional pipeline infrastructure.
Its Ebedei flare-gas monetisation project in Delta State, developed with backing from A.P. Moller Capital from 2019, converts gas that would otherwise be flared into usable energy.
The model has enabled customers to substitute natural gas for more expensive and higher-emission diesel-based generation, while also creating a commercial outlet for stranded or previously flared gas.
Powergas currently operates four mother stations in Ikorodu, Lagos; Ogbele, Rivers State; Ebedei, Delta State; and Ore, Ondo State.
The company also has a fleet of more than 250 tube skids and had delivered more than 600 million standard cubic metres of CNG as of December 2025.
Ardova sees gas as new growth platform
Ardova Managing Director, Abiola Babatunde-Ojo, said the acquisition would give the company the infrastructure and operational capabilities required to expand its participation in Nigeria’s growing gas market.
“This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria,” Babatunde-Ojo said.
He said the immediate focus would include expanding compression capacity, introducing CNG into Ardova’s retail network and connecting more industrial customers and vehicle fleets to domestic natural gas.
The enlarged business is expected to pursue additional compression infrastructure across gas-producing corridors and potentially expand into other West African markets over time.
A.P. Moller Capital exits after seven-year growth phase
The acquisition also represents a new phase for Powergas after A.P. Moller Capital’s investment in the business.
According to Sam Senbanjo, a Partner at A.P. Moller Capital, the company progressed from a project concept in 2019 into an operating CNG business through development, construction, commissioning and subsequent scale-up.
He said the investment had helped customers gain access to domestic natural gas beyond the reach of Nigeria’s conventional 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,” Senbanjo said.
Powergas Vice-Chairman Pulak Sen said Ardova’s nationwide distribution footprint complemented Powergas’ compression infrastructure and could accelerate expansion into new markets.
He added that the partnership could support Nigeria’s broader transition towards auto-gas and increased domestic gas utilisation.
Diadem deepens role in gas logistics
Diadem Energy’s participation adds an existing relationship with Powergas to the transaction.
Diadem Group Chairman George Eluwa said the company had worked with Powergas as its virtual-pipeline logistics partner and had seen the potential of transporting natural gas beyond the conventional pipeline network.
He described the acquisition as an opportunity to build on that relationship and participate more directly in the development of Nigeria’s domestic gas market.
The enlarged platform is expected to create an integrated gas infrastructure business spanning gas compression, logistics, distribution and downstream customer access.
For Ardova, the transaction comes as Nigeria seeks to increase domestic gas utilisation and develop CNG infrastructure as part of efforts to diversify the country’s energy mix and reduce dependence on liquid fuels.
Completion of the acquisition remains subject to regulatory, third-party and other customary closing conditions.