Ardova Plc has announced plans to establish 100 compressed natural gas (CNG) refuelling stations across Nigeria within the next 24 months, following its proposed acquisition of Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited. The energy company is leading a consortium with Diadem Energy Services Limited to take over the assets from A.P. Moller Capital-backed entities. The transaction, expected to close by the end of 2026 subject to regulatory approvals, aims to position Ardova as a major player in Nigeria’s expanding gas market.
This strategic move combines Ardova’s existing downstream retail network with Powergas’s advanced gas sourcing, compression, and distribution infrastructure. By integrating CNG refuelling points into its current petroleum and LPG outlets, Ardova seeks to accelerate deployment without building entirely new standalone stations. This approach leverages existing customer bases, logistics systems, and physical locations to fast-track expansion.
Powergas operates key facilities in Delta State, including gas-processing and compression plants, and has developed a virtual pipeline model that transports compressed gas via road. The company currently produces over 10 million standard cubic metres of gas per month and has facilitated more than 100,000 CNG deliveries. Its infrastructure supports industrial clients located outside Nigeria’s limited pipeline network, offering an alternative energy source where conventional supply is unavailable.
The acquisition gives Ardova access to critical upstream capabilities, enabling it to expand compression capacity along gas-producing corridors and form new partnerships with upstream producers. This positions the company to act as an offtaker for associated gas—often flared due to lack of infrastructure or markets—thereby reducing environmental impact and creating commercial value.
Nigeria’s push for CNG adoption has gained momentum after the removal of petrol subsidies, which led to higher fuel prices. However, widespread vehicle conversion has been hindered by insufficient refuelling infrastructure. Ardova’s target of 100 CNG stations addresses this gap and allows the company to serve both retail motorists and commercial fleets.
Diadem Energy’s involvement strengthens the logistics side of the operation, bringing experience in transporting compressed gas through virtual pipelines. Together, the consortium brings together Powergas’s production and compression, Diadem’s transport expertise, and Ardova’s retail reach.
Looking ahead, Ardova plans to extend its gas platform beyond Nigeria into other West African markets with similar infrastructure challenges. Success will depend on executing the Nigerian expansion efficiently, with the 100-station target serving as a clear benchmark for progress. If achieved, this transformation could mark a significant shift from traditional petroleum products toward natural gas as a core part of Ardova’s energy portfolio.
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