Ardova Plc, a Nigerian integrated energy and infrastructure firm, has announced a landmark deal to acquire 100% of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL) through a consortium led by Ardova and Diadem Energy. The transaction, facilitated by A.P. Moller Capital’s Africa Infrastructure Fund I (AIF I) and Impala Energy Holdings, marks a significant expansion of Ardova’s energy portfolio, adding a natural gas platform to its existing petroleum products and liquefied petroleum gas (LPG) businesses. The acquisition, pending regulatory approvals, is expected to be finalized by the end of 2026.
Powergas, established in 2013 by the Clean Energy Group, pioneered a model to transport natural gas beyond traditional pipelines, supplying industrial and power customers via compression facilities and virtual pipeline networks. Its Ebedei flare gas monetization project, supported by A.P. Moller Capital, converts flared gas into energy for commercial and industrial use. A.P. Moller Capital’s initial investment in PEL through Impala in April 2019 catalyzed the project’s development, construction, and operational scale-up, with PEL commencing operations in 2020 and commissioning its Ebedei compression plant in 2021. The company has since expanded distribution across Nigeria’s South-East, South-South, and South-West regions.
The acquisition aligns with Nigeria’s national energy strategy, including 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. Powergas’ operations have already created 175 direct jobs and reduced emissions by capturing gas that would otherwise be flared, replacing diesel generators for industrial and commercial customers. Ardova plans to integrate Powergas’ gas sourcing relationships and compression infrastructure with its nationwide retail, logistics, and distribution network, targeting 100 CNG refueling sites within 24 months to expand access to gas for commercial fleets and motorists.
AbdulWasiu Sowami, executive chairman of Ardova Plc, emphasized the strategic importance of the deal, stating, “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.” He highlighted Ardova’s national distribution network and long-term investment capabilities as critical to connecting Nigeria’s gas resources to industry, power, and transportation sectors.
Abiola Babatunde-Ojo, Ardova’s managing director, outlined the consortium’s focus on expanding compression capacity and integrating CNG into the company’s retail network. “Our ambition is to deliver more affordable, lower-emission energy and lower transportation costs for Nigerians,” he said. Pulak Sen, vice-chairman of Powergas, acknowledged A.P. Moller Capital’s role in scaling the business, adding, “Ardova’s national reach and our compression backbone are a natural fit— together, we can expand into new markets and geographies.”
Sam Senbanjo, partner at A.P. Moller Capital, noted the progress of PEL since 2019, stating, “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.” George Eluwa, chairman of Diadem Group, emphasized the partnership’s potential to transform Nigeria’s energy landscape, citing the “transformative potential of taking natural gas beyond the conventional pipeline network.”
The deal underscores Ardova’s vision to become a leading domestic gas infrastructure and monetization partner for upstream producers, with plans to expand Powergas’ compression capacity across gas-producing corridors. Over time, the consortium aims to extend the platform into West Africa, leveraging Nigeria’s gas resources to reduce flaring and unlock investment in the gas value chain. The transaction reflects a strategic milestone for Powergas, which has positioned itself as a key player in Nigeria’s energy transition, with the consortium’s combined expertise poised to accelerate the country’s gas utilization goals.
The acquisition is expected to enhance Nigeria’s domestic gas utilization, support environmental sustainability, and drive economic growth through job creation and infrastructure development. With Ardova’s national footprint and Powergas’ innovative model, the partnership aims to deliver scalable, low-emission energy solutions aligned with national and regional energy strategies.