Ardova Plc and its consortium partners have reached an agreement for thefull acquisition of Powergas, Africa’s largest Compressed Natural Gas (CNG) producer and virtual pipeline distributor.
Announced jointly in London and Lagos, the agreement transfers ownership from A.P. Moller Capital which invested in Powergas in 2019 through its Africa Infrastructure Fund I and Impala Energy Holdings to a buying group spearheaded by Ardova Plc alongside Diadem Energy.
Powergas, originally established in 2013 by the Clean Energy Group, carved out a pioneering role by bypassing traditional fixed pipelines. Utilizing advanced compression facilities and virtual pipeline networks, the company delivers natural gas directly to industrial and power consumers.
A cornerstone of its environmental and commercial success is the Ebedei flare gas monetization project, which converts otherwise wasted flared gas into productive energy. Since commencing operations in 2020 and opening its Ebedei compression plant in 2021, Powergas has expanded its distribution footprint across the South-East, South-South, and South-West regions of Nigeria.
For Ardova, a prominent Nigerian integrated energy and infrastructure company, the acquisition provides a crucial natural gas platform that seamlessly integrates with its established portfolio of retail fuels, liquefied petroleum gas, aviation fuel, lubricants, and logistics.
Commenting, Dr. AbdulWasiu Sowami, Executive Chairman of Ardova Plc, noted that combining Powergas’s technical prowess in gas compression with Ardova’s extensive retail distribution network strongly supports national initiatives to deepen domestic gas utilization.
Meanwhile, A.P. Moller Capital Partner Sam Senbanjo praised the journey of transforming Powergas into an operational market leader, expressing confidence in Ardova and Diadem Energy’s capacity to steer the company into its next chapter of growth.
Following the anticipated completion of the transaction, Ardova plans to aggressively expand CNG availability by integrating refuelling infrastructure across its nationwide retail station network, positioning the combined entity to play a leading role in the region’s transition toward cleaner, domestically sourced energy.