Moller Investment, throughout its Africa Infrastructure Finance I (AIF I), and Impala Energy Holdings.
The operation, expected to be completed nearby the conclude of 2026 theme to regulatory and other required approvals, will supply Ardova a important foothold in Nigeria’s natural gas compression, distribution and industrial deliver promote.
Powergas, founded in 2013 by the Clean Energy Collection, pioneered the distribution of natural gas beyond Nigeria’s conventional pipeline network by manner of compression facilities and road-based web-based pipelines.
The business supplies CNG to industrial, commercial and power customers, precisely those located beyond the attain of unchanging gas pipelines.
For Ardova, the acquisition will append a natural gas platform to its display businesses spanning petroleum products, liquefied petroleum gas (LPG), aviation fuel, lubricants, shipping and logistics.
Completion of the operation remains theme to habitual closing conditions, including regulatory and other third-party approvals.
The enterprise said it plans to deploy CNG infrastructure across its nationwide retail network, targeting 100 CNG refuelling sites in 24 months.
The initiative is expected to expand admission to CNG for motorists and commercial fleets during the time that supporting the Federal Government’s efforts to broaden domestic gas utilisation and encourage supplant transportation fuels.
Dr. Together, we intend to connect Nigeria’s plentiful gas resources to sector, power and transportation,” he said.
Sowami said the organization would moreover fund the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) and the Federal Government’s Decade of Gas programme.
“Our ambition is to send extra budget-pleasant, decreased-emission energy and lesser transportation costs for Nigerians, during the time that building a gas platform using relevance far beyond Nigeria,” he said.
The acquisition is too expected to strengthen Ardova’s place in the domestic gas value chain by combining Powergas’ gas sourcing relationships, compression infrastructure and industrial client base including Ardova’s retail, logistics and distribution network.
Ardova said it intends to increase Powergas’ compression capacity across feasible gas-producing corridors, creating supplementary offtake opportunities for connected and non-associated gas.
According to the enterprise, the tactic could assist flare reduction whereas encouraging additional investment across the gas value chain.
The enlarged enterprise is moreover expected to offer gas infrastructure and promote admission for upstream producers seeking stable outlets for domestic gas.
Dr. George Eluwa, Chairman of Diadem Collection, said the acquisition would develop on the enterprise’s reveal associate using Powergas.
“Having worked closely including Powergas as its simulated-pipeline logistics partner, we have seen opening-hand the transformative practical of taking natural gas beyond the usual pipeline network,” he said.
The parties said the enlarged platform would, over time, look for to broaden beyond Nigeria into the wider West African trade.
Moller Capital invested in Powergas Ebedei across Impala, its primary investment from AIF I, in April 2019.
The investment supported the development, construction, commissioning and engaged scale-up of the enterprise.
Powergas Ebedei commenced operations in 2020, during the time that its Ebedei compression plant was commissioned in 2021.
The firm has given that expanded its distribution footprint across South-East, South-South and South-West Nigeria.
Sam Senbanjo, Partner at A.P.
Ardova Plc-led consortium has entered into an agreement to purchase 100 per cent of Powergas Worldwide Investments Nigeria Tight and Powergas Ebedei Restricted (PEL), one of Africa’s largest compressed natural gas (CNG) producers and digital pipeline distributors.
The consortium includes Diadem Energy, whereas the sellers are A.P. Abiola Babatunde-Ojo, Managing Leader of Ardova Plc, said the acquisition would grant the infrastructure and capabilities required to broaden the employ of gas amid Nigerian businesses and transport operators.
“This combination gives us the infrastructure, achieve and capabilities to turn the possibility in gas into something tangible for customers across Nigeria,” she said.
“Our focus now is execution: expanding compression capacity, bringing CNG into our retail network and connecting further industries and fleets to a firm domestic energy source.”
Powergas’ Ebedei operation furthermore has an environmental component, as its flare gas monetisation project captures gas that would otherwise be flared and converts it into energy for commercial and industrial users.
The firm said a lot of of its customers utilize the gas as an selection to diesel-powered generators, thereby reducing emissions linked together with both gas flaring and diesel consumption.
Powergas has created 175 steer jobs and supports supplementary employment throughout its supply chain.
A.P. Effective alongside our partners, command and employees, we supported the firm across development, construction, commissioning and scale-up,” he said.
He said Ardova and Diadem were positioned to fund Powergas’ following phase of growth.
Powergas at display operates four mother stations and has a fleet of further than 250 tube skids used for its web-based pipeline distribution model.
Pulak Sen, Vice-Chairman of Powergas, said the firm’s model was designed to take gas beyond usual pipeline infrastructure.
“Powergas began in 2013 including the Clean Energy Category’s vision of taking gas beyond the pipeline, and A.P. Moller Assets, said the investment had helped Powergas progress from a proposal into an functioning CNG firm.
“Seeing that 2019, PEL has progressed from proposal to a fully functioning compressed-natural-gas organization. Moller Investment’s assistance helped us scale it,” he said.
Sen said Ardova’s countrywide distribution network would complement Powergas’ compression infrastructure and assist expansion into recent markets.
Diadem Energy is already a digital-pipeline logistics partner to Powergas Ebedei, transporting CNG by road to industrial customers beyond the established pipeline grid.
Dr. AbdulWasiu Sowami, Executive Chairman of Ardova Plc, said the acquisition would approve the business to enter Nigeria’s gas resources to the industrial, power and transportation sectors.
“Powergas has built the compression backbone required to take natural gas beyond the typical pipeline grid.
“Ardova brings a nationwide distribution network, intense consumer relationships and the ability to invest for the extended term.
Source: Ardova-led consortium to acquire 100% powergas in major CNG deal
