A.P. Moller Capital has entered into an agreement for a consortium led by Ardova Plc to acquire Powergas.
The companies include Powergas Global Investments Nigeria Ltd. and Powergas Ebedei Ltd. (PEL), collectively known as “Powergas”.
The Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami, disclosed this in a statement on Friday in Lagos.
Powergas is one of Africa’s largest Compressed Natural Gas producers and virtual pipeline distributors.
Ardova Plc is a Nigerian integrated energy and infrastructure company with operations in retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants and logistics.
Sowami said the transaction would add a natural gas platform to Ardova’s existing petroleum products and Liquefied Petroleum Gas businesses.
He said the acquisition would combine Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base with Ardova’s nationwide retail, logistics and distribution network.
“Ardova plans to deploy CNG infrastructure across its retail network and is targeting 100 CNG refuelling sites nationwide within 24 months.
"This will expand access to gas for commercial fleets and motorists while supporting Nigeria’s drive to increase domestic gas utilisation,” he said.
Sowami said the enlarged platform was expected to position Ardova as a leading domestic gas infrastructure and gas monetisation partner for upstream producers.
He said Ardova would expand Powergas’ compression capacity across viable gas-producing corridors to create firm offtake for associated and non-associated gas.
According to him, the expansion would support flare reduction and unlock further investment across the gas value chain.
“Over time, Ardova intends to extend the platform into the wider West African market,” he said.
Sowami described the sale as the next stage in Powergas’ development.
“Ardova, with its partner Diadem, combines Nigerian market knowledge with energy distribution and logistics capabilities, and is well positioned to build on the operational business,” he said.
He said Nigeria’s next era of energy development would be built on gas and 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,” he said.
Sowami said the companies intended to connect Nigeria’s gas resources to industry, power and transportation.
He said the initiative would support President Bola Ahmed Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles.
He said it would also support the Federal Government’s Decade of Gas programme.
“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,” he said.
He said completion of the transaction was expected around the end of 2026, subject to customary closing conditions.
He added that the conditions included receipt of required regulatory and other third-party approvals.
The Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, said the combination would provide infrastructure, reach and capabilities to expand gas access across Nigeria.
"This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria,” he said.
Babatunde-Ojo said the company’s focus was on expanding compression capacity, bringing CNG into its retail network and connecting industries and fleets to domestic gas.
“We are building a platform that will serve customers at scale today and grow with Nigeria’s energy needs for decades to come,” he said.
The Vice-Chairman, Powergas, Mr Pulak Sen, said Powergas began in 2013 with the Clean Energy Group’s vision of taking gas beyond the pipeline.
He said A.P. Moller Capital’s partnership helped the company scale its operations.
“We are deeply grateful to both. Ardova’s national reach and our compression backbone are a natural fit,” he said.
Sen said the companies could expand into new markets and geographies and play a leading role in delivering Nigeria’s Auto-Gas vision.
The Partner at A.P. Moller Capital, Mr Sam Senbanjo, said PEL had progressed from concept to a fully operational compressed-natural-gas business since 2019.
He said the company supported the business through development, construction, commissioning and scale-up.
Senbanjo said the partnership helped 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 said.
Dr George Eluwa, Chairman of Diadem Group, the parent company of Diadem Energy, said the company had 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,” he said.
Eluwa said the acquisition represented a continuation of Diadem Group’s partnership with Powergas and an opportunity to contribute to Nigeria’s energy future.
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