Ardova-Led Consortium Enters Agreement to Acquire 100% of Powergas, Africa’s Largest CNG Virtual Pipeline Distributor

LAGOS — An investor consortium led by Ardova Plc and including Diadem Energy has entered into a definitive agreement to acquire a 100% stake in Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (collectively known as Powergas).

The sellers include A.P. Moller Capital, acting through its Africa Infrastructure Fund I, and Impala Energy Holdings. The transaction is expected to reach final completion by the end of 2026, subject to customary regulatory and third-party approvals.

Scaling Virtual Pipeline Infrastructure

Founded in 2013, Powergas has grown into one of Africa's premier compressed natural gas producers and virtual pipeline operators, supplying industrial, commercial, and power customers located beyond traditional fixed pipeline grids. Operating four mother stations and a fleet exceeding 250 tube skids, the company monetizes associated and non-associated gas, including its Ebedei project in Delta State, reducing industrial reliance on diesel generators and curbing flare emissions.

Following closing, Ardova plans to integrate Powergas's sourcing and compression backbone with its own nationwide retail, logistics, and distribution network. A core pillar of the post-acquisition strategy involves deploying CNG refueling infrastructure across Ardova’s service stations, targeting 100 operating sites nationwide within 24 months.

"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," noted Dr. AbdulWasiu Sowami, Executive Chairman of Ardova Plc. "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 and the federal government's Decade of Gas programme."

Broadening the Domestic Gas Footprint

Managing Director Dr. Abiola Babatunde-Ojo emphasized that the transaction furnishes Ardova with the operational depth required to commercialize gas at scale for end-users across Nigeria, with long-term aspirations to expand the platform into wider West African markets.

Market analysts view the consolidation as a major catalyst for domestic gas utilization, directly linking upstream production assets with downstream commercial fleets and retail motorists.

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