ARDOVA-LED CONSORTIUM AGREES TO ACQUIRE POWERGAS

A consortium led by Ardova Plc and including Diadem Energy has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas.

A.P. Moller Capital announced the agreement, which will see it exit its investment in Powergas, one of Africa’s largest compressed natural gas producers and virtual pipeline distributors. The transaction is expected to be completed by the end of 2026, subject to regulatory and other required approvals.

Powergas was founded in 2013 and developed a virtual pipeline model that involves compressing natural gas and transporting it by road to industrial, commercial and power customers beyond the reach of Nigeria’s fixed pipeline network.

Its Ebedei operation captures gas that would otherwise be flared and supplies it to customers who use it as an alternative to diesel-powered generators. The business has created 175 direct jobs, according to A.P. Moller Capital.

Following completion of the acquisition, Ardova plans to deploy CNG infrastructure across its nationwide retail network and establish 100 CNG refuelling stations within 24 months.

The company also plans to expand Powergas’ compression capacity across suitable gas-producing areas and increase access to domestic natural gas for industries, commercial users and transport operators.

Ardova said the enlarged business could eventually expand into other West African markets as part of its long-term growth strategy.