Ardova-led Consortium Buys Powergas as CNG Demand Grows
- September 25, 2026
Infrastructure fund manager A.P. Moller Capital is selling its Nigerian compressed natural gas business, Powergas, to a consortium led by Ardova as demand for CNG continues to grow across Africa’s most populous country.
The consortium, which also includes Diadem Energy, will acquire Powergas Global Investments Nigeria and Powergas Ebedei for an undisclosed sum.
The businesses operate CNG production facilities and virtual pipeline networks across southern Nigeria, supplying gas to industrial and commercial customers beyond the reach of conventional pipeline infrastructure.
For Ardova, one of Nigeria’s major downstream energy companies, the acquisition provides a dedicated natural gas platform that it plans to combine with its existing retail network to expand CNG refuelling infrastructure nationwide.
The transaction comes as Nigeria accelerates its shift towards CNG, driven partly by higher petrol and diesel costs and government efforts to promote domestically produced gas as an alternative transport fuel.
More than 120,000 vehicles have now been converted to CNG in Nigeria, while the number of certified conversion centres has risen above 400 and more than 90 CNG refuelling stations are operating across the country, according to figures released by the Nigerian government on September 19.
That represents a sharp expansion from the early stages of the programme. In August 2025, officials said the number of converted vehicles had increased from about 4,000 to 100,000 within 18 months. Industry participants have also reported queues at some CNG stations as vehicle conversions outpaced the availability of refuelling infrastructure.
The government has continued to add infrastructure. In May, four CNG projects were commissioned in Lagos, Abuja and Owerri, including a Lagos mother station capable of dispensing 96,000 standard cubic metres of gas per day and an Abuja facility designed to serve as many as 1,000 cars and tricycles daily.
The expansion creates an opportunity for companies such as Ardova and Powergas as Nigeria seeks to increase domestic gas utilisation and reduce its dependence on petrol and diesel for road transport.
A.P. Moller Capital is selling Powergas through its Africa Infrastructure Fund I and portfolio company Impala Energy Holdings.
Kim Fejfer, managing partner and CEO at A.P. Moller Capital, said the transaction provided an opportunity to realise the fund’s investment after helping expand the business.
“This agreement is the optimal outcome for realising AP Moller Capital’s Impala investment and reflects our investment approach in practice,” Fejfer said.
“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.”
Sam Senbanjo, partner at A.P. Moller Capital, said Powergas Ebedei had grown from a project under development in 2019 into an operating CNG 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,” he said.
Powergas vice-chairman Pulak Sen said Ardova’s retail footprint would give the business an opportunity to expand further.
“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,” Sen said.
