An Ardova Plc-led consortium has agreed to acquire Powergas, one of Nigeria’s major compressed natural gas producers and virtual pipeline operators.
The deal is expected to expand access to compressed natural gas across Nigeria while strengthening the company’s presence in the country’s growing cleaner energy market.
Ardova Agrees to Acquire Powergas
The consortium, which includes Diadem Energy, has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited.
The transaction was announced by A.P. Moller Capital, which is expected to exit its investment in Powergas once the deal is completed.
The transaction is expected to close by the end of 2026, subject to the necessary conditions being met.
Powergas’ Role in Nigeria’s Gas Industry
Powergas was founded in 2013 by the Clean Energy Group and developed a virtual pipeline model for transporting compressed natural gas by road.
The model allows natural gas to reach industrial, commercial and power customers located beyond the country’s fixed gas pipeline network.
The company has therefore played a role in connecting businesses with alternative gas supplies.
Plans for 100 CNG Refuelling Sites
Following the acquisition, the consortium plans to expand CNG infrastructure through its nationwide retail network.
The target is to establish 100 CNG refuelling sites within 24 months.
The expansion is expected to increase the availability of CNG for businesses and motorists while creating a larger distribution network for natural gas across the country.
Part of Nigeria’s Gas Expansion Drive
The planned expansion aligns with the Federal Government’s Decade of Gas initiative and its Presidential Initiative on Compressed Natural Gas and Electric Vehicles.
These programmes are aimed at increasing the use of natural gas and supporting alternatives in Nigeria’s transportation and energy sectors.
Ardova Executive Chairman AbdulWasiu Sowami said the company intends to connect Nigeria’s gas resources to industry, power and transportation.
Focus on Lower-Emission Energy
The consortium said the investment would support the development of more affordable and lower-emission energy options.
CNG has increasingly attracted attention in Nigeria as businesses and transport operators look for alternatives to conventional petroleum fuels.
The planned network expansion could therefore make CNG more accessible to a wider range of users.
Deal Expected to Close by End of 2026
The acquisition is expected to be completed before the end of the year.
If the transaction proceeds as planned, the subsequent rollout of CNG infrastructure will be closely watched as Nigeria continues developing its natural gas sector.
The proposed 100-site network would represent a significant expansion of CNG refuelling infrastructure across the country.