A consortium led by Ardova Plc and Diadem Energy is set to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, together known as Powergas.
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Powergas is one of Africa’s largest Compressed Natural Gas producers and virtual pipeline distributors.
A.P Moller Capital earlier today announced that, through its Africa Infrastructure Fund (AIF I), and Impala Energy Holdings, it has entered into an agreement to sell Powergas to the consortium.
Powergas was founded in 2013 by the Clean Energy Group, which pioneered its model of taking natural gas beyond the pipeline, supplying natural gas to industrial and power customers through compression facilities and virtual pipeline networks, enabling delivery beyond the fixed pipeline grid.
A.P. Moller Capital invested in PEL through Impala, which was AIF I’s first investment in April 2019. Working alongside local partners and management, A.P. Moller Capital supported PEL through development, construction, commissioning, and operational scale-up.
PEL commenced operations in 2020 with its Ebedei compression plant commissioned in 2021, and it has since expanded distribution across South-East, South and South-West Nigeria.
The Ebedei flare gas monetisation project, developed with investment from A.P. Moller Capital, converts otherwise flared gas into productive energy for commercial and industrial use.
During A.P. Moller Capital’s ownership, Powergas Ebedei Limited progressed from development to full production, expanded distribution across southern Nigeria and increased access to reliable domestic gas, while reducing gas flaring and helping customers to replace diesel-fired power generation.
Kim Fejfer, Managing Partner and CEO at A.P. Moller Capital, said: “This agreement is the optimal outcome for realising A.P. Moller Capital’s Impala investment and reflects our investment approach in practice. By combining capital with operational expertise, we have helped build a stronger business that supports access to reliable energy for industrial and commercial customers in Nigeria. The development of Powergas through Impala shows how our investment in essential infrastructure can support sustainable economic growth while creating long-term value for our investors.”
Completion of the transaction is expected around the end of 2026, subject to customary closing conditions, including receipt of required regulatory and other third-party approvals.
Ardova Plc is a leading indigenous player in the downstream Oil, Gas, and integrated Energy sector. With a network of over 700 stations spread across the six geographical zones of Nigeria, the company specializes in the procurement and distribution of Premium Motor Spirit (PMS), Diesel (AGO) and Liquefied Natural Gas (LPG).
Following completion, the acquisition will combine Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base with Ardova’s nationwide retail, logistics and distribution network. Ardova plans to deploy CNG infrastructure across its retail network and is targeting 100 CNG refuelling sites nationwide within 24 months, expanding access to gas for commercial fleets and motorists while supporting Nigeria’s drive to increase domestic gas utilisation.
The enlarged platform is expected to position Ardova to become a leading domestic gas infrastructure and gas monetisation partner for upstream producers. Ardova intends to expand Powergas’ compression capacity across viable gas-producing corridors, creating firm offtake for associated and non-associated gas, supporting flare reduction and unlocking further investment across the gas value chain.
Over time, Ardova intends to extend the platform into the wider West African market.
About Ardova Plc
Ardova Plc is an integrated energy infrastructure company and one of Nigeria’s foremost downstream businesses, with a heritage spanning more than six decades from its inception as BP Nigeria in 1964. Its operations span petroleum products distribution and retail, terminals, aviation fuel, LPG, lubricants, shipping, logistics and renewables.
For more information, visit: www.ardovaplc.com
About Powergas
Powergas is a leading compressed natural gas producer and virtual pipeline operator, supplying industrial, commercial and power customers across Nigeria through compression and road-based distribution infrastructure. Founded in 2013 by the Clean Energy Group, the company operates four mother stations and a fleet of over 250 tube skids.
For more information, visit: www.powergas.com
About A.P. Moller Capital
A.P. Moller Capital is a global institutional fund manager focused on scaling critical infrastructure businesses, particularly in transportation, logistics and energy transition. A.P. Moller Capital invests in and develops businesses that support sustainable economic growth and prosperity in its markets of operation, while striving to deliver consistent and attractive investment returns to its investors. A.P. Moller Capital, part of A.P. Moller Group, is authorised by the Danish Financial Supervisory Authority.
For more information, visit: www.apmollercapital.com
About Diadem Energy
Diadem Energy is a member of Diadem Group, a Nigerian-owned energy, logistics and infrastructure enterprise based in Abuja. It builds practical systems that get essential energy to the businesses and communities that need it. Diadem Group is also an existing virtual-pipeline logistics partner to Powergas Ebedei Limited, moving compressed natural gas by road to industrial customers beyond the reach of the pipeline grid.
For more information, visit: www.diademconsults.org
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
