Ardova Plc is set to deepen its presence in Nigeria’s rapidly expanding compressed natural gas market after agreeing to lead a consortium, alongside Diadem Energy, in the acquisition of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited.
The transaction, announced by A.P. Moller Capital on Friday, is expected to close before the end of 2026, subject to customary closing conditions, including regulatory and third-party approvals.
The companies, collectively known as Powergas, are among the major players in Nigeria’s compressed natural gas (CNG) industry, providing what is described as a “virtual pipeline” service that enables natural gas to reach customers located beyond the country’s conventional fixed pipeline network.
Founded in 2013 by the Clean Energy Group, Powergas pioneered the transportation of compressed natural gas by road to industrial, commercial and power customers.
The company’s model has provided an alternative energy source for businesses that might otherwise depend heavily on diesel generators, while also supporting the utilisation of natural gas that would have been flared.
One of its major projects is the Ebedei flare gas monetisation facility in Delta State, which was developed with the backing of A.P. Moller Capital from 2019.
Through the project, gas that would otherwise have been flared is processed for use as an energy source, contributing to efforts to reduce emissions while improving access to domestic gas for commercial and industrial users.
Powergas currently operates four mother stations located in Ikorodu, Lagos State; Ogbele, Rivers State; Ebedei, Delta State; and Ore, Ondo State.
The company also operates a fleet of more than 250 tube skids and had delivered more than 600 million standard cubic metres of compressed natural gas as of December 2025.
For Ardova, the acquisition represents a significant expansion of its existing energy portfolio, which includes petroleum products, liquefied petroleum gas, aviation fuel, lubricants, shipping and logistics.
The Lagos-based integrated energy company, whose history in Nigeria dates back to BP Nigeria in 1964, intends to leverage Powergas’ infrastructure to accelerate the deployment of CNG across its nationwide retail network.
Under the expansion plan, Ardova is targeting the establishment of 100 CNG refuelling sites within 24 months, potentially giving motorists, commercial fleets and other users wider access to an alternative automotive fuel.
The strategy comes against the backdrop of the Federal Government’s Decade of Gas initiative, launched in 2021 to promote the development and utilisation of Nigeria’s abundant gas resources and support the transition towards a gas-powered economy by 2030.
It also aligns with the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, which seeks to encourage cleaner transportation fuels and reduce the cost of mobility in Nigeria.
Explaining the rationale behind the acquisition, the Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami, said the transaction would combine Powergas’ gas compression infrastructure with Ardova’s nationwide distribution capabilities.
“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. Ardova brings a national distribution network, deep customer relationships, and the ability to invest for the long term,” he said.
Sowami added that the enlarged business would focus on connecting Nigeria’s gas resources to industrial, power and transportation users.
“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.
“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,” he said.
The Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, said the acquisition would provide the company with the infrastructure and reach required to capture opportunities emerging in the domestic gas market.
“This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria. 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,” he said.
He added: “We are building a platform that will serve customers at scale today and grow with Nigeria’s energy needs for decades to come.”
For Powergas, the transaction marks the beginning of a new phase following years of development and expansion under A.P. Moller Capital.
Vice-Chairman of Powergas, Pulak Sen, said the company had evolved from an initiative to extend gas access beyond the pipeline network into an established CNG business.
“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,” he said.
Sen described Ardova’s distribution network and Powergas’ compression infrastructure as complementary assets that could support further expansion.
“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,” he added.
A.P. Moller Capital has been involved in Powergas since 2019, supporting the company through the development and expansion of its operations.
According to a Partner at A.P. Moller Capital, Sam Senbanjo, the business progressed from the project-development stage into a fully operational CNG company during the investment period.
“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.
He added: “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.”
Diadem Energy, meanwhile, brings an existing relationship with Powergas to the transaction, having previously worked with the company as a virtual-pipeline logistics partner.
Chairman of Diadem Group, the parent company of Diadem Energy, George Eluwa, said the acquisition would build on the group’s experience in the sector.
“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.
“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,” he added.
The enlarged platform is expected to expand Ardova’s role in Nigeria’s domestic gas infrastructure, with plans to increase compression capacity across viable gas-producing corridors and provide infrastructure and monetisation services to upstream producers.
The companies also envisage taking the business beyond Nigeria into other West African markets as the platform expands.
The proposed acquisition therefore brings together Powergas’ CNG compression and virtual-pipeline infrastructure, Ardova’s nationwide energy distribution network and Diadem’s logistics capabilities at a time when Nigeria is seeking to increase domestic gas utilisation.
Completion of the transaction remains subject to the fulfilment of customary closing conditions, including applicable regulatory and third-party approvals.