Sowami’s Ardova-led consortium to acquire Powergas, deepen CNG market push

Business

LAGOS, Nigeria (NPA) — Nigerian energy company Ardova Plc, led by businessman AbdulWasiu Sowami, has agreed to acquire 100 per cent of Powergas, one of Africa’s largest compressed natural gas (CNG) producers and virtual pipeline distributors.

The transaction, agreed with Danish investment firm A.P. Moller Capital, will see a consortium led by Ardova and including Diadem Energy acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited.

The financial terms were not disclosed. Completion is expected around the end of 2026, subject to regulatory and other required approvals.

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Powergas operates a “virtual pipeline” model, compressing natural gas and transporting it by road to industrial, commercial and power customers beyond the reach of Nigeria’s conventional fixed pipeline network.

Founded in 2013 by Clean Energy Group, Powergas developed its business around the compression, transportation and distribution of natural gas. Its Ebedei operation in Delta State also captures gas that would otherwise be flared and supplies it to industrial users.

A.P. Moller Capital invested in Powergas Ebedei through Impala Energy Holdings in April 2019, its Africa Infrastructure Fund I’s first investment. Powergas commenced operations in 2020, while its Ebedei compression facility was commissioned in 2021. The company has since expanded its distribution network across southern Nigeria and created 175 direct jobs.

Ardova expands into CNG

The acquisition will expand Ardova’s existing downstream energy business into CNG production, compression and distribution.

Ardova operates across petroleum products retail and distribution, liquefied petroleum gas, aviation fuel, shipping, lubricants and logistics. The company also plans to deploy CNG infrastructure across its retail network, targeting 100 CNG refuelling sites nationwide within 24 months.

The combination of Powergas’ gas-sourcing relationships, compression infrastructure and industrial customer base with Ardova’s nationwide retail, logistics and distribution network is expected to strengthen the company’s position across Nigeria’s emerging gas value chain.

Ardova Executive Chairman AbdulWasiu Sowami said Nigeria’s next phase of energy development would be driven by natural gas and that the company intended to expand access to gas for industry, power and transportation.

He said the enlarged business would support the Federal Government’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles and the Decade of Gas programme.

Focus on gas monetisation

The Powergas acquisition also gives Ardova access to infrastructure designed to monetise natural gas that might otherwise be flared.

A.P. Moller Capital said Powergas’ model had helped provide industrial and commercial customers with an alternative to diesel-fired power generation while supporting the utilisation of domestic gas.

Following completion, Ardova plans to expand Powergas’ compression capacity across viable gas-producing corridors, creating additional offtake opportunities for associated and non-associated gas.

Powergas Vice-Chairman Pulak Sen said the combination of the company’s compression infrastructure and Ardova’s national distribution reach would create opportunities to expand into new markets and geographical areas.

Diadem Group Chairman George Eluwa said his company’s experience as a virtual-pipeline logistics partner to Powergas would support the next phase of the business.

Wider West African expansion

The enlarged platform is also expected to provide a basis for regional expansion, with Ardova planning to explore opportunities across West Africa as demand grows for natural gas and alternatives to diesel.

A.P. Moller Capital Partner Sam Senbanjo said Powergas had developed from a concept into a fully operational CNG business since the fund’s investment in 2019.

The transaction is expected to close around the end of 2026, subject to customary closing conditions, including regulatory and third-party approvals.