ýA consortium led by Ardova Plc and including Diadem Energy has agreed to acquire 100 per cent of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL), the companies said.
ýThe agreement was entered into with A.P. Moller Capital, through its Africa Infrastructure Fund I (AIF I), and Impala Energy Holdings.
ýPowergas is one of Africa’s largest compressed natural gas (CNG) producers and virtual pipeline distributors, supplying industrial, commercial and power customers through compression facilities and road-based distribution infrastructure.
ýCompletion of the transaction is expected by the end of 2026, subject to regulatory and other required third-party approvals.
ýArdova said the acquisition would add natural gas operations to its existing businesses in petroleum products, liquefied petroleum gas (LPG), shipping, aviation fuel, lubricants and logistics.
ýPowergas was founded in 2013 by the Clean Energy Group.
ýIts operations include the production and distribution of CNG to customers beyond the reach of the conventional pipeline network.
ýIts Ebedei project in Delta State was developed to monetise gas that would otherwise have been flared.
ýA.P. Moller Capital invested in PEL through Impala in April 2019. PEL commenced operations in 2020, while its Ebedei compression plant was commissioned in 2021.
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ýThe company has since expanded its distribution network across Southeast, Southsouth and Southwest Nigeria.
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ýPowergas operates four mother stations and has a fleet of more than 250 tube skids, according to the companies.
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ýArdova said it plans to deploy CNG infrastructure across its retail network, with a target of 100 CNG refuelling sites nationwide within 24 months of the acquisition.
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ýThe company also plans to expand Powergas’ compression capacity in gas-producing areas and increase its offtake of associated and non-associated gas.
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ýExecutive Chairman of Ardova Plc, AbdulWasiu Sowami, said the acquisition would enable the company to expand its activities in the gas sector.
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ýHe said: ‘Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid.
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ý’Ardova brings a national distribution network, deep customer relationships and the ability to invest for the long term. Together, we intend to connect Nigeria’s abundant gas resources to industry, power and transportation.’
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ýManaging Director of Ardova, Abiola Babatunde-Ojo, said the company would focus on expanding compression capacity and introducing CNG facilities into its retail network.
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ý’Our focus now is execution: expanding compression capacity, bringing CNG into our retail network and connecting more industries and fleets to a reliable domestic energy source,’ she said.
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ýVice-Chairman of Powergas, Pulak Sen, said the acquisition would enable the company to expand into new markets.
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ýSam Senbanjo, a partner at A.P. Moller Capital, said the fund had supported PEL through its development, construction, commissioning and operational scale-up since 2019.
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ýHe said the company had helped customers access domestic gas beyond the reach of the pipeline network.
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ýChairman of Diadem Group, George Eluwa, said his company had worked with Powergas as its virtual-pipeline logistics partner.
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ýDiadem Energy is a member of Diadem Group and will participate in the acquisition consortium.
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ýThe transaction will transfer ownership of Powergas from A.P. Moller Capital and its investment partners to the Ardova-led consortium, subject to the completion conditions.