Infrastructure fund manager AP Moller Capital is selling its Nigerian compressed natural gas (CNG) business, Powergas, to a consortium led by Ardova and including Diadem Energy for an undisclosed sum.
The sale, which is being done via AP Moller’s Africa Infrastructure Fund I and portfolio company Impala Energy Holdings, covers Powergas Global Investments Nigeria and Powergas Ebedei, which operate CNG production facilities and virtual pipeline networks across southern Nigeria.
The acquisition gives Nigerian integrated energy company Ardova a dedicated natural gas platform, with plans to roll out CNG refuelling infrastructure across its national retail network.
Kim Fejfer, managing partner and CEO at AP Moller Capital, said: “This agreement is the optimal outcome for realising AP 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 AP Moller Capital, said: “Since 2019, Powergas Ebedei 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.”
Pulak Sen, vice-chairman, Powergas, said: “Powergas began in 2013 with the Clean Energy Group’s vision of taking gas beyond the pipeline, and AP 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, said: “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.”
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