By Henry Obetta

A consortium led by Ardova Plc and including Diadem Energy has entered into an agreement to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited from A.P. Moller Capital and Impala Energy Holdings.

A.P. Moller Capital announced the transaction in a statement, saying it was being undertaken through its Africa Infrastructure Fund I (AIF I) and Impala Energy Holdings.

Powergas is one of Africa’s major compressed natural gas (CNG) producers and virtual pipeline distributors, while Ardova is a Nigerian integrated energy and infrastructure company with interests spanning retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants and logistics.

The transaction will add a natural gas platform to Ardova’s existing petroleum products and LPG businesses.

Powergas was founded in 2013 by the Clean Energy Group to take natural gas beyond conventional pipeline infrastructure by supplying industrial and power customers through compression facilities and virtual pipeline networks.

Its Ebedei flare gas monetisation project, developed with investment from A.P. Moller Capital, converts gas that would otherwise be flared into energy for commercial and industrial use.

A.P. Moller Capital invested in Powergas Ebedei Limited through Impala, marking AIF I’s first investment in April 2019.

Working with local partners and management, the investment firm supported the company through development, construction, commissioning and operational expansion.

Powergas Ebedei commenced operations in 2020, with its Ebedei compression plant commissioned in 2021. The company has since expanded its distribution network across the South-East, South-South and South-West.

Following completion of the transaction, Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base will be combined with Ardova’s nationwide retail, logistics and distribution network.

According to Ardova, the company plans to deploy CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months.

The company said the expansion would increase access to natural gas for commercial fleets and motorists while supporting efforts to increase domestic gas utilisation.

Ardova also plans to expand Powergas’ compression capacity across viable gas-producing corridors, with the aim of creating offtake opportunities for associated and non-associated gas, reducing gas flaring and attracting further investment across the gas value chain.

The company said it would eventually seek to expand the platform into other West African markets.

Speaking at an event to formalise the acquisition, Executive Chairman of Ardova, Dr AbdulWasiu Sowami, said the transaction would enable the company to connect Nigeria’s gas resources with industrial, power and transportation markets.

“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 said.

Sowami said Ardova would bring its national distribution network, customer relationships and long-term investment capacity to the platform.

“Together, we intend to connect Nigeria’s abundant gas resources to industry, power and transportation, supporting President Bola Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) and the federal government’s Decade of Gas programme,” he said.

He added that the company’s ambition was to provide more affordable and lower-emission energy while reducing transportation costs and developing a gas platform capable of expanding beyond Nigeria.

The Managing Director of Ardova, Dr Abiola Babatunde-Ojo, said the combination of both businesses would provide the infrastructure and reach required to expand access to gas across the country.

“Our focus now is execution: expanding compression capacity, bringing CNG into our retail network and connecting more industries and fleets to a reliable domestic energy source,” she said.

Vice-Chairman of Powergas, Pulak Sen, said the company’s virtual pipeline model, combined with Ardova’s nationwide reach, would provide opportunities for expansion into new markets and support Nigeria’s auto-gas ambitions.

Also speaking, Sam Senbanjo, Partner at A.P. Moller Capital, said Powergas had grown from a concept into an operational CNG business since the firm’s investment in 2019.

He said the investment firm was proud of the company’s development and expressed confidence that Ardova and Diadem would support its next phase of growth.

Chairman of Diadem Group, the parent company of Diadem Energy, Dr George Eluwa, said the acquisition represented an opportunity to build on the company’s existing relationship with Powergas as its virtual-pipeline logistics partner.

He said Diadem had seen the potential of taking natural gas beyond conventional pipeline infrastructure and was looking forward to contributing to Nigeria’s energy development.

Completion of the transaction is expected around the end of 2026, subject to customary closing conditions, including required regulatory and other third-party approvals.