Firm to expand CNG business, boost cleaner energy drive

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Ardova Plc-led consortium, including Diadem Energy, has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas, in a transaction expected to close by the end of 2026.

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In a statement released on Saturday, the deal, announced by A.P. Moller Capital, will see the Danish investment firm exit its stake in Powergas, one of Africa’s largest compressed natural gas producers and virtual pipeline distributors.

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Powergas, founded in 2013 by the Clean Energy Group, pioneered the virtual pipeline model of compressing natural gas and transporting it by road to industrial, commercial and power customers beyond the reach of Nigeria’s fixed pipeline network.

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Its flagship Ebedei flare gas monetisation project in Delta State was developed with A.P. Moller Capital’s backing from 2019. The project converts gas that would otherwise be flared into usable energy while supplying businesses that would otherwise depend on diesel generators.

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Powergas currently operates four mother stations in Ikorodu, Lagos; Ogbele, Rivers; Ebedei, Delta; and Ore, Ondo. It also has a fleet of more than 250 tube skids and had delivered over 600 million standard cubic metres of CNG as of December 2025.

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For Ardova, the acquisition will add a strategic gas platform to its existing downstream portfolio covering petroleum products, LPG, aviation fuel, lubricants, shipping and logistics.

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The company plans to deploy CNG infrastructure across its nationwide retail network, with a target of establishing 100 CNG refuelling sites within 24 months.

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The expansion aligns with the Federal Government’s Decade of Gas initiative and President Bola Ahmed Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles, which seek to expand the use of gas and promote cleaner and more affordable transportation.

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Speaking on the transaction, the Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami, said the deal would help expand access to natural gas across the country.

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“Nigeria’s next era of energy development will be built on gas, and it will be built at scale,” Sowami said.

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“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.

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“Together, we intend to connect Nigeria’s abundant gas resources to industry, power and transportation, supporting 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.

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“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.”

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The Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, said the acquisition would enable the company to harness opportunities in the gas industry.

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“This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria,” he said.

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“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.

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“We are building a platform that will serve customers at scale today and grow with Nigeria’s energy needs for decades to come.”

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The Vice-Chairman of Powergas, Pulak Sen, said Ardova’s national reach and Powergas’ compression infrastructure would provide a platform for further expansion.

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“Powergas began in 2013 with the Clean Energy Group’s vision of taking gas beyond the pipeline, and A.P. Moller Capital’s partnership helped us scale it. We are deeply grateful to both,” Sen said.

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“Ardova’s national reach and our compression backbone are a natural fit – together, we can expand into new markets and geographies and play a leading role in delivering Nigeria’s Auto-Gas vision. We are very excited about the next chapter.”

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A.P. Moller Capital Partner, Sam Senbanjo, said Powergas had developed from a concept into a fully operational CNG business since 2019.

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“Working alongside our partners, management and employees, we supported the business through development, construction, commissioning and scale-up, helping customers access domestic gas beyond the reach of the pipeline network,” Senbanjo said.

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“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.”

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Chairman of Diadem Group, the parent company of Diadem Energy, George Eluwa, said the company had seen the potential of Powergas through its work as the company’s virtual-pipeline logistics partner.

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“Having 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,” Eluwa said.

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“For Diadem Group, this is the continuation of a journey that began on the ground with Powergas, and a real opportunity to contribute to Nigeria’s energy future.”

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The enlarged platform is expected to position Ardova as a major domestic gas infrastructure and monetisation partner for upstream producers, with plans to expand compression capacity across viable gas-producing corridors.

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The consortium also plans to explore opportunities to extend the business into wider West African markets.

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Completion of the transaction remains subject to customary closing conditions, including regulatory and third-party approvals.

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