NEW: Ardova Plc secures 100% stake in Powergas and PEL

Ardova Plc is set to expand its presence in Nigeria’s natural gas market after an Ardova-led consortium, including Diadem Energy, entered into an agreement to acquire 100% of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL) from A.P. Moller Capital and Impala Energy Holdings.

The transaction, announced by A.P. Moller Capital through its Africa Infrastructure Fund I (AIF I) and Impala Energy Holdings, covers the two businesses collectively known as Powergas, one of Africa’s largest compressed natural gas (CNG) producers and virtual pipeline distributors.

The acquisition will add a natural gas platform to Ardova’s existing portfolio of petroleum products, liquefied petroleum gas (LPG), aviation fuel, lubricants, shipping and logistics businesses.

Ardova is a Nigerian integrated energy and infrastructure company with a nationwide operational footprint. Following completion of the transaction, Powergas’ gas-sourcing relationships, compression infrastructure and industrial customer base will be combined with Ardova’s retail, logistics and distribution network.

Powergas Built Around Gas Distribution Beyond the Pipeline

Powergas was founded in 2013 by the Clean Energy Group, with a business model designed to deliver natural gas to industrial and power customers beyond the reach of Nigeria’s conventional fixed pipeline network.

The company uses compression facilities and virtual pipeline networks to transport natural gas to customers, while its Ebedei flare-gas monetisation project converts gas that would otherwise be flared into energy for commercial and industrial use.

A.P. Moller Capital invested in Powergas Ebedei through Impala Energy Holdings in April 2019, making the investment the first transaction under its Africa Infrastructure Fund I.

With support from local partners and management, the investment backed Powergas through development, construction, commissioning and subsequent operational expansion. Powergas Ebedei commenced operations in 2020, while its Ebedei compression plant was commissioned in 2021.

The company has since expanded its distribution footprint across South-East, South-South and South-West Nigeria.

Ardova Targets Expanded CNG Infrastructure

As part of its plans following completion of the acquisition, Ardova intends to deploy CNG infrastructure across its nationwide retail network.

The company is targeting 100 CNG refuelling sites within 24 months, a move intended to expand access to compressed natural gas for commercial fleets and motorists.

Ardova also plans to expand Powergas’ compression capacity across viable gas-producing corridors, with the broader objective of connecting domestic gas resources to industrial, power and transportation customers.

The enlarged platform is expected to support gas monetisation, provide additional offtake opportunities for associated and non-associated gas and contribute to efforts to reduce gas flaring.

Transaction Supports Powergas’ Next Growth Phase

The transaction marks the next stage in Powergas’ development after A.P. Moller Capital’s investment and operational support since 2019.

During its ownership period, Powergas Ebedei progressed from development to full production, expanded distribution across southern Nigeria and increased access to domestic gas for industrial and commercial customers.

The business has also captured gas that would otherwise have been flared and supplied it to customers who can use it as an alternative to diesel-fired power generation. According to the transaction announcement, Powergas has created 175 direct jobs, alongside additional employment across its Nigerian supply chain.

Ardova Eyes Wider Gas Market

Dr AbdulWasiu Sowami, Executive Chairman of Ardova Plc, said the company sees natural gas as an important part of Nigeria’s evolving energy landscape and intends to develop the Powergas platform at scale.

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He said:“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.”

Sowami added that the combined platform would seek to connect Nigeria’s gas resources to industry, power and transportation, while supporting the country’s CNG and gas-utilisation initiatives.

Abiola Babatunde-Ojo, Managing Director of Ardova Plc, said the immediate focus would be on expanding compression capacity, introducing CNG infrastructure into Ardova’s retail network and connecting more industries and fleets to domestic gas supplies.

Completion Expected by End of 2026

The acquisition is expected to be completed around the end of 2026, subject to customary closing conditions, including required regulatory and other third-party approvals. Financial terms of the transaction were not disclosed.

Over the longer term, Ardova intends to extend the Powergas platform into the wider West African market, potentially broadening the company’s role in gas distribution and infrastructure beyond Nigeria.