Ardova-led Consortium to Acquire 100% Stake in Africa’s Largest CNG Producer

By Adedapo Adesanya

A consortium led by Ardova Plc has entered into an agreement to acquire a 100 per cent stake in Powergas, one of Africa’s largest compressed natural gas (CNG) producers and virtual pipeline distributors, for an undisclosed amount.

The transaction involves Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL), collectively known as Powergas.

According to a statement, the acquisition would add a natural gas platform to Ardova’s existing petroleum products and liquefied petroleum gas businesses.

The transaction would 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,” the chairman of Ardova Plc, Mr AbdulWasiu Sowami, said.

He noted that the expansion would increase access to gas for commercial fleets and motorists while supporting Nigeria’s drive to increase domestic gas utilisation.

Mr Sowami said the enlarged business would position Ardova as a domestic gas infrastructure and gas monetisation partner for upstream producers.

He added that Ardova planned to expand Powergas’ compression capacity across viable gas-producing corridors to create firm offtake for associated and non-associated gas.

According to him, the expansion would also support flare reduction and unlock further investment across the gas value chain, with plans to eventually extend the platform into the wider West African market.

The Managing Director of Ardova, Mr Abiola Babatunde-Ojo, said the combination would provide the infrastructure and distribution reach needed to expand gas access across Nigeria.

“This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria,” he said.

Mr Babatunde-Ojo said Ardova would focus on expanding compression capacity, integrating CNG into its retail network and connecting industries and fleets to domestic gas.

The Vice-Chairman of Powergas, Mr Pulak Sen, said Ardova’s national reach and Powergas’ compression infrastructure would complement each other and create opportunities for expansion into new markets.

“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.”

Meanwhile, A.P. Moller Capital Partner, Mr Sam Senbanjo, said Powergas had developed from a concept into a fully operational CNG business since 2019, with the investment firm supporting its development, construction, commissioning and expansion.

The Chairman of Diadem Group, Mr George Eluwa, said the acquisition would continue Diadem Group’s partnership with Powergas, which had worked as its virtual-pipeline logistics partner.

“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.”

Mr Sowami said completion of the transaction was expected around the end of 2026, subject to customary closing conditions, including required regulatory and third-party approvals.