Ardova: Acquires Powergas Nigeria, Expands Gas Sector Footprint

• A consortium led by Ardova Plc, including Diadem Energy, is acquiring Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited.
• The transaction, which sees A.P. Moller Capital exit its stake, is expected to close by the end of 2026.
• Powergas pioneered the "virtual pipeline" model, delivering over 600 million standard cubic metres of CNG by December 2025.
• Ardova plans to deploy 100 CNG refuelling sites across its retail network within 24 months following the acquisition.
• This acquisition aligns with Nigeria's "Decade of Gas" initiative and President Tinubu's auto-gas promotion efforts.

The integration of Powergas's virtual pipeline expertise with Ardova's national distribution network is expected to contribute significantly to these national objectives.

A consortium spearheaded by Ardova Plc, which includes Diadem Energy, has reached an agreement to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas. This significant transaction, publicly announced by A.P. Moller Capital, is projected to conclude by the end of 2026 and marks the Danish investor's divestment from its stake in Powergas, a prominent producer of compressed natural gas and virtual pipeline distributor across Africa.

Powergas, established in 2013 by the Clean Energy Group, pioneered an innovative "virtual pipeline" distribution model. This system involves compressing natural gas and transporting it via road to industrial, commercial, and power customers situated beyond the reach of Nigeria's conventional fixed pipeline infrastructure. A key initiative for the company has been its Ebedei flare gas monetisation project in Delta State, which, with support from A.P. Moller Capital since 2019, transforms otherwise wasted flared gas into usable energy. This project not only contributes to emission reductions but also supplies energy to businesses that would typically rely on diesel generators.

As of December 2025, Powergas operated four primary mother stations located in Ikorodu (Lagos), Ogbele (Rivers), Ebedei (Delta), and Ore (Ondo). The company also manages a substantial fleet of over 250 tube skids, through which it had delivered more than 600 million standard cubic metres of compressed natural gas. The Ardova Powergas deal represents a pivotal expansion for Ardova, integrating a strategic gas platform into its existing diverse downstream portfolio, which encompasses petroleum products, liquefied petroleum gas (LPG), aviation fuel, lubricants, shipping, and logistics.

For Ardova, an integrated energy company based in Lagos with roots tracing back to BP Nigeria in 1964, this acquisition is a strategic move to bolster its presence in Nigeria's burgeoning gas sector. The company plans to leverage Powergas's infrastructure to deploy compressed natural gas (CNG) facilities across its extensive nationwide retail network. The ambitious goal is to establish 100 CNG refuelling sites within a 24-month timeframe following the transaction's completion.

Ardova's Executive Chairman, Dr. AbdulWasiu Sowami, articulated the vision behind the Ardova Powergas deal, emphasizing that Nigeria's future energy landscape will be significantly shaped by gas, developed at scale. He highlighted Powergas's established compression backbone, which enables natural gas distribution beyond traditional pipelines, and Ardova's complementary strengths in national distribution, deep customer relationships, and long-term investment capacity. Together, the entities aim to bridge the gap between Nigeria's abundant gas resources and the demands of industry, power generation, and transportation.

Dr. Abiola Babatunde-Ojo, the Managing Director of Ardova Plc, further underscored the transformative potential of the acquisition. He noted that the combination of assets provides the necessary infrastructure, market reach, and operational capabilities to capitalize on opportunities within the gas industry. The immediate focus will be on execution, including expanding compression capacity, integrating CNG into Ardova's retail outlets, and connecting more industrial and fleet customers to a dependable domestic energy source. This strategic investment signals significant M&A activity within the Nigeria gas sector.

The Ardova acquires Powergas Nigeria acquisition aligns seamlessly with key governmental energy initiatives, positioning the combined entity to play a crucial role in Nigeria's energy transition. This includes the federal government's "Decade of Gas" initiative, launched in 2021, which aims to transform Nigeria into a gas-powered economy by 2030. Furthermore, the deal supports President Bola Tinubu's Presidential Initiative on Compressed Natural Gas and Electric Vehicles, designed to reduce transport costs and emissions through the widespread adoption of auto-gas.

The integration of Powergas's virtual pipeline expertise with Ardova's national distribution network is expected to contribute significantly to these national objectives. By making more affordable, lower-emission energy accessible and reducing transportation costs for Nigerians, the combined entity aims to build a gas platform with relevance extending beyond Nigeria's borders. The acquisition is poised to expand into new markets and geographies, playing a leading role in realizing Nigeria's Auto-Gas vision and supporting the broader Nigeria Decade of Gas initiative. This strategic move underscores a commitment to long-term growth and sustainable energy solutions within the country.

This acquisition signals significant M&A activity and strategic investment in Nigeria's gas sector, aligning with the government's 'Decade of Gas' initiative. Lawyers advising clients in energy, infrastructure, or M&A should monitor regulatory developments, potential for further consolidation, and evolving compliance requirements for gas distribution and virtual pipeline operations.

Source: Original reporting via Punch