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A.P. Moller Capital has agreed to exit its investment in Nigerian compressed natural gas business Powergas through a sale to a consortium led by Ardova and including Diadem Energy.
The transaction will see the consortium acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL), together known as Powergas.
A.P. Moller Capital invested in PEL through Impala Energy Holdings in April 2019. The investment was the first made by A.P. Moller Capital’s Africa Infrastructure Fund I.
Powergas operates gas infrastructure in Nigeria, supplying compressed natural gas to industrial and commercial customers through compression facilities and a virtual-pipeline distribution network.
Ardova is a Nigerian integrated energy and infrastructure company with a nationwide footprint across retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants and logistics. The transaction adds a natural gas platform to Ardova’s established petroleum products and LPG businesses.
Kim Fejfer, managing partner and CEO at A.P. Moller Capital, said: “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. The development of Powergas through Impala shows how our investment in essential infrastructure can support sustainable economic growth while creating long-term value for our investors.”
Sam Senbanjo, partner at A.P. Moller Capital, commented: “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. By turning gas that would otherwise be flared into an alternative to diesel, Powergas delivers a double benefit for emissions, while creating jobs in the region. We are proud of what has been achieved and believe Ardova and Diadem are well placed to support Powergas in its next phase of growth.”
Pulak Sen, vice-chairman of Powergas, noted: “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.”
AbdulWasiu Sowami, executive chairman of Ardova, added: “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. Together, we intend to connect Nigeria’s abundant gas resources to industry, power and transportation, supporting President Bola Ahmed Tinubu’s 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 deliver more affordable, lower-emission energy and lower transportation costs for Nigerians, while building a gas platform with relevance far beyond Nigeria.”
Completion of the transaction is expected around the end of 2026, subject to customary closing conditions, including receipt of required regulatory and other third-party approvals.
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