An 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.
The acquisition will give Ardova a strategic foothold in Nigeria’s compressed natural gas (CNG) infrastructure and virtual pipeline market as the company moves to expand gas distribution across its nationwide retail network.
The deal, announced on Friday by A.P. Moller Capital, will also see the Danish investment firm exit its stake in Powergas, one of Africa’s major compressed natural gas producers and virtual pipeline distributors.
Founded in 2013 by the Clean Energy Group, Powergas 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.
Its flagship Ebedei flare gas monetisation project in Delta State, developed with the backing of A.P. Moller Capital since 2019, converts gas that would otherwise be flared into usable energy while supplying businesses that might otherwise depend on diesel generators.
Powergas currently operates four mother stations in Ikorodu, Lagos; Ogbele, Rivers; Ebedei, Delta; and Ore, Ondo, with a fleet of more than 250 tube skids.
As of December 2025, the company had delivered more than 600 million standard cubic metres of CNG.
Ardova targets 100 CNG refuelling sites
For Ardova, the acquisition adds a strategic gas platform to its existing downstream energy portfolio, which includes petroleum products, LPG, aviation fuel, lubricants, shipping and logistics.
The Lagos-based integrated energy company, whose history dates back to BP Nigeria in 1964, plans to deploy CNG infrastructure across its nationwide retail network, with a target of establishing 100 CNG refuelling sites within 24 months.
The expansion aligns with the Federal Government’s Decade of Gas initiative, launched in 2021 to transform Nigeria into a gas-powered economy by 2030, as well as President Bola Ahmed Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles, which seeks to promote auto-gas adoption while reducing transportation costs and emissions.
Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami, said the acquisition would combine Powergas’ compression infrastructure with Ardova’s national distribution network and customer relationships.
“Nigeria’s next era of energy development will be built on gas, and it will be built at scale,” Sowami said.
He said Powergas had developed the compression backbone needed to take natural gas beyond conventional pipeline networks, while Ardova would bring its nationwide distribution network and capacity for long-term investment.
“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,” he added.
According to Sowami, the consortium’s ambition is to deliver more affordable, lower-emission energy and reduce transportation costs while building a gas platform with potential beyond Nigeria.
Powergas infrastructure to support expansion
The Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, said the transaction would allow the company to harness opportunities in Nigeria’s growing gas industry.
“This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria,” she said.
Babatunde-Ojo said Ardova’s immediate focus would be on expanding compression capacity, introducing CNG into its retail network and connecting more industries and vehicle fleets to a reliable domestic energy source.
Vice-Chairman of Powergas, Pulak Sen, said the company’s journey began in 2013 with the Clean Energy Group’s vision of taking gas beyond the pipeline, while A.P. Moller Capital’s partnership helped scale the business.
He said Ardova’s national reach and Powergas’ compression infrastructure provided a strong platform for expansion into new markets and geographies.
“We are very excited about the next chapter,” Sen said.
A.P. Moller Capital exits after scaling Powergas
According to Sam Senbanjo, a Partner at A.P. Moller Capital, Powergas had progressed since 2019 from a concept into a fully operational compressed-natural-gas business.
He said the investment firm worked with its partners, management and employees through development, construction, commissioning and scale-up, helping customers access domestic gas beyond the reach of Nigeria’s pipeline network.
Senbanjo said Ardova and Diadem were positioned to support Powergas through its next phase of growth.
Chairman of Diadem Group, the parent company of Diadem Energy, George Eluwa, said his company had worked closely with Powergas as its virtual-pipeline logistics partner and had witnessed the potential of taking natural gas beyond conventional pipeline networks.
“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,” Eluwa said.
The enlarged platform is expected to position Ardova as a major domestic gas infrastructure and monetisation partner for upstream producers.
The consortium plans to expand compression capacity across viable gas-producing corridors and eventually extend the business into wider West African markets.
Completion of the transaction remains subject to customary closing conditions, including regulatory and third-party approvals.