Two Nigerian energy companies, Ardova Plc and Nigerian-owned Diadem Energy, have joined forces to acquire 100 per cent of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas, one of Africa’s largest compressed natural gas producers and virtual pipeline distributors.
The landmark transaction places indigenous enterprise at the centre of Nigeria’s expanding compressed natural gas value chain and is expected to strengthen domestic gas utilisation, expand access to compressed natural gas for industries, power and transportation, and support Nigeria’s efforts to harness its gas resources for economic development.
Nigerian-owned Diadem Energy, a member of Diadem Group, and Ardova Plc, one of Nigeria’s foremost downstream energy businesses, will acquire Powergas from Africa Infrastructure Fund I (AIF I), managed by A.P. Moller Capital, through Impala Energy Holdings.
The acquisition comes as Nigeria intensifies efforts to harness its abundant natural gas resources for domestic economic development under the Renewed Hope Agenda, including the Federal Government’s Decade of Gas programme and the Presidential Initiative on Compressed Natural Gas and Electric Vehicles, Pi-CNG & EV.
The Federal Government has identified increased domestic gas utilisation, CNG adoption and lower transportation costs as part of its broader economic and energy reforms.
Speaking at Powergas’ third staff town hall meeting in Lagos, Chairman of Diadem Group, Dr. George Eluwa, said the consortium brings complementary capabilities across the gas value chain.
“Having worked closely with Powergas as its virtual pipeline logistics partner, we have seen firsthand the transformative potential of taking natural gas beyond the conventional pipeline network. This consortium brings together every link in the gas value chain: Powergas compresses it, Diadem moves it, and Ardova brings it within reach of customers across Nigeria.
“Together, we are building a platform that can deliver cleaner, more affordable energy to industries, fleets and communities across Nigeria, in line with the Pi-CNG and Decade of Gas ambitions. 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.”
Powergas was founded in 2013 by the Clean Energy Group to take natural gas beyond conventional pipeline networks through compression facilities and virtual pipeline distribution; its Ebedei flare gas monetisation project converts otherwise flared gas into productive energy for commercial and industrial use.
Vice Chairman of Powergas, Pulak Sen, said the acquisition provides a platform for further expansion.
“Powergas began in 2013 with the Clean Energy Group’s vision of taking gas beyond the pipeline, and A.P. Moller Capital’s partnership helped us scale it. We are deeply grateful to both. 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.”
Managing Partner and CEO at A.P. Moller Capital, Kim Fejfer, said the transaction reflects the fund’s infrastructure investment strategy.
“This agreement is the optimal outcome for realising A.P. Moller Capital’s Impala investment and reflects our investment approach in practice. By combining capital with operational expertise, we have helped build a stronger business that supports access to reliable energy for industrial and commercial customers in Nigeria.”
Partner at A.P. Moller Capital, Sam Senbanjo, said the company had evolved from concept to a fully operational CNG business.
“Since 2019, PEL has progressed from concept to a fully operational compressed natural gas business. Working alongside our partners, management and employees, we supported the business through development, construction, commissioning and scale up, helping customers access domestic gas beyond the reach of the pipeline network.”
Following completion, the acquisition will combine Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base with Diadem’s virtual pipeline logistics and 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.
Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami, said the combination would help connect Nigeria’s gas resources to industry, power and transportation.
“Nigeria’s next era of energy development will be built on gas, and it will be built at scale. Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid. Ardova brings a national distribution network, deep customer relationships and the ability to invest for the long term.”
He added that the partnership had already demonstrated the potential of virtual pipeline logistics.
“What brought us to Powergas was not only its assets but also its people and the reputation you have built. Your customers trust you to deliver gas safely and every time. You built a venture pipeline where a physical pipeline does not reach, and you did it with a safety record that speaks for itself.”
According to Sowami, “In 2025 alone, together we, Diadem, completed more than 6,500 trips, we covered over 2.7 million kilometres of road network, we delivered over 51 million standard cubic metres of gas, and we saved the country over environmental exposures to over 500 tonnes of carbon dioxide compared to diesel.”
Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, said the priority would now be execution.
“This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria. 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.”
The transaction, first announced by A.P. Moller Capital and Ardova on September 25, 2026, is expected to be completed around the end of 2026, subject to customary closing conditions, including regulatory and other third-party approvals.
The acquisition, subject to regulatory and other customary approvals, will bring together Powergas’ gas sourcing relationships and compression infrastructure, Diadem’s virtual pipeline logistics capability and Ardova’s nationwide retail, logistics and distribution network.
The consortium also intends to expand Powergas’ compression capacity across viable gas-producing corridors, creating a firm offtake for associated and non-associated gas, supporting flare reduction and unlocking further investment across the gas value chain.
It further plans over time to extend the platform into the wider West African market, positioning the enlarged business to contribute to Nigeria’s long term gas monetisation, energy transition and industrialisation ambitions.
Beyond its immediate commercial significance, the acquisition is expected to strengthen Nigeria’s capacity to transform its abundant natural gas resources into reliable and affordable energy for industry, power and transportation, while supporting local enterprise, job creation and national energy security.
As the enlarged platform expands across viable gas producing corridors and, over time, into the wider West African market, it could deepen regional energy connectivity, support intra-African trade and unlock new opportunities for industrialisation.
In this broader context, the transaction represents not only an investment in infrastructure and energy but also a progressive step towards positioning Nigerian enterprise, capital and innovation at the heart of a more integrated, competitive and energy-secure African economy.
