A.P. Moller Capital has agreed to sell Nigerian compressed natural gas business Powergas to a consortium led by Ardova Plc and including Diadem Energy, marking an exit for its Africa Infrastructure Fund I.

The transaction covers Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited (PEL), together known as Powergas, one of Africa’s largest compressed natural gas producers and virtual pipeline distributors. Financial terms were not disclosed.

A.P. Moller Capital invested in PEL through Impala Energy Holdings in April 2019, representing the first investment by its Africa Infrastructure Fund I.

Powergas was founded in 2013 by the Clean Energy Group and supplies natural gas to industrial and power customers beyond the fixed pipeline network through compression facilities and virtual pipelines.

During A.P. Moller Capital’s ownership, PEL progressed through development, construction and commissioning to become an operational CNG business. Operations began in 2020, with its Ebedei compression plant commissioned the following year.

The company has since expanded distribution across South-East, South and South-West Nigeria. Its Ebedei flare gas monetisation project captures gas that would otherwise be flared and supplies it to commercial and industrial customers, including businesses using natural gas as an alternative to diesel.

“This agreement is the optimal outcome for realising A.P. Moller Capital’s Impala investment and reflects our investment approach in practice,” said Kim Fejfer, Managing Partner and CEO at A.P. Moller Capital. “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.”

Following completion, Powergas will become part of Ardova’s broader Nigerian energy platform. Ardova operates across retail fuels, liquefied petroleum gas, shipping, aviation fuel, lubricants and logistics.

The company plans to combine Powergas’ gas sourcing relationships, compression infrastructure and industrial customer base with its nationwide distribution and logistics network.

Ardova is targeting 100 CNG refuelling sites across Nigeria within 24 months and plans to expand Powergas’ compression capacity across gas-producing areas. Over time, it also intends to expand the platform into other West African markets.

“Since 2019, PEL has progressed from concept to a fully operational compressed-natural-gas business,” said Sam Senbanjo, Partner at A.P. Moller Capital. “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.”

Powergas has created 175 direct jobs, as well as additional employment through its Nigerian supply chain.

“Ardova’s national reach and our compression backbone are a natural fit – together, we can expand into new markets and geographies,” said Pulak Sen, Vice-Chairman of Powergas.

The transaction is expected to complete around the end of 2026, subject to regulatory and other customary approvals.