Ardova buys Nigeria's Powergas, one of Africa's largest CNG distributors
What's the deal? A.P. Moller CapitalDealroom has a profile for this one. Try Dealroom → has agreed to sell Powergas to a consortium led by Nigerian energy firm Ardova PlcDealroom has a profile for this one. Try Dealroom → and including Diadem EnergyDealroom has a profile for this one. Try Dealroom →. The deal, announced September 25, 2026, gives A.P. Moller Capital an exit from its Impala Energy HoldingsDealroom has a profile for this one. Try Dealroom → investment. Terms were undisclosed.
What each side does: Powergas is one of Africa's largest compressed natural gas (CNG) producers, distributing gas through a virtual-pipeline network to industrial and commercial customers beyond Nigeria's fixed pipeline grid. Ardova is a Nigerian integrated energy company spanning retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants, and logistics.
Why now? Powergas was A.P. Moller Capital's first investment through its Africa Infrastructure Fund I, made via Impala in April 2019. The company moved from development to full production during that ownership, commissioning its Ebedei compression plant in 2021 and expanding across southern Nigeria.
What's the endgame? The acquisition adds a gas platform to Ardova's petroleum and LPG businesses, combining Powergas' compression infrastructure and industrial customer base with Ardova's nationwide distribution. Ardova plans to deploy CNG across its retail network, targeting 100 refuelling sites nationwide within 24 months.
The bigger play: Ardova intends to expand compression capacity across Nigeria's gas-producing corridors, creating firm offtake for producers and supporting flare reduction. Over time, it plans to extend the platform into the wider West African market.
The signal: The deal reflects a push to monetise Nigeria's flared gas and displace diesel generators, aligning with the country's drive to increase domestic gas use. Powergas' Ebedei project captures gas that would otherwise be flared, cutting emissions and supporting 175 direct jobs.
Image credit: Jeremy Buckingham MLC
