By Oluwakemi Kindness
Millions of Nigerians who depend on road transportation could gain access to alternative fuel options as the Ardova Plc–Diadem Energy Consortium targets 100 compressed natural gas (CNG) refuelling stations nationwide within 24 months.
The plan follows the consortium’s agreement to acquire 100 per cent of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas, one of Africa’s largest CNG producers and virtual pipeline distributors.
Diadem Group announced the transaction on September 30, 2026, saying Diadem Energy and Ardova would acquire Powergas from Africa Infrastructure Fund I (AIF I), managed by A.P. Moller Capital through Impala Energy Holdings.
The transaction, first announced by A.P. Moller Capital and Ardova on September 25, is expected to close towards the end of 2026, subject to regulatory and other third-party approvals.
The acquisition will combine Powergas’ gas sourcing and compression infrastructure with Diadem’s virtual-pipeline logistics and Ardova’s nationwide retail, logistics and distribution network.
The companies said the enlarged platform would expand access to natural gas for motorists, commercial fleets and industries, particularly in areas beyond conventional pipeline networks.
Speaking at Powergas’ third staff town hall meeting in Lagos, Chairman of Diadem Group, Dr George Eluwa, said the consortium brought together complementary capabilities across the gas value chain.
Eluwa said Powergas would compress the gas, Diadem would transport it, while Ardova would use its nationwide network to bring it closer to customers.
He said the combination would support the delivery of cleaner and more affordable energy to industries, fleets and communities, in line with the Federal Government’s Decade of Gas programme and Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV).
Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami, said the acquisition would help connect Nigeria’s gas resources to the industrial, power and transportation sectors.
Sowami said Ardova’s national distribution network, customer relationships and investment capacity would complement Powergas’ compression infrastructure.
Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, said the immediate focus would be on expanding compression capacity, introducing CNG across Ardova’s retail network and connecting more industries and fleets to domestic gas.
Powergas was founded in 2013 by the Clean Energy Group to supply natural gas to industrial and power customers beyond the fixed pipeline grid through compression facilities and virtual-pipeline networks.
The consortium plans to expand Powergas’ compression capacity across viable gas-producing corridors, creating additional offtake opportunities for associated and non-associated gas while supporting efforts to reduce gas flaring.
Over time, Ardova intends to extend the enlarged gas platform into the wider West African market, while A.P. Moller Capital will exit its investment in Powergas through Impala Energy Holdings.
