Norton Rose Fulbright advises A.P. Moller Capital and Clean Energy on sale of Powergas to consortium led by Ardova Plc

Norton Rose Fulbright has advised global institutional fund manager, A.P. Moller Capital (investing out of Africa Infrastructure Fund I) and Clean Energy S.A., on the sale of their investment in Powergas, one of Africa's largest compressed natural gas (CNG) producers and virtual pipeline operator, to a consortium led by Ardova Plc and including Diadem Energy.

Powergas operates critical gas infrastructure in Nigeria, supplying compressed natural gas to industrial and commercial customers beyond the reach of the country's pipeline network through its virtual pipeline distribution model. During A.P. Moller Capital's and Clean Energy's ownership, the business expanded significantly, increasing access to domestic gas while supporting reductions in gas flaring and diesel consumption.

The acquisition will combine Powergas' gas sourcing relationships, compression infrastructure and industrial customer base with Ardova's nationwide distribution and logistics network, supporting the continued growth of gas infrastructure across Nigeria.

The transaction is subject to customary closing conditions, including regulatory approvals.

The Norton Rose Fulbright team was led by London-based corporate partners Bayo Odubeko and Nari Ertem, supported by senior associate Gillian Jaravaza and associate Charlotte Connell.

Bayo Odubeko, Norton Rose Fulbright LLP Co-Head of Africa, commented:

"We are pleased to have advised A.P. Moller Capital and Clean Energy on this significant transaction. The deal highlights continued investor interest in energy infrastructure assets that support economic development and energy transition objectives across Africa as well as the role gas is expected to play in the economic resurgence of Nigeria. Powergas has established a strong position in Nigeria's gas market, and we look forward to seeing the business continue its growth under its new ownership."

Norton Rose Fulbright has extensive experience advising clients on investments and strategic transactions across Africa's infrastructure and energy sectors. Our Africa practice supports sponsors, investors, lenders and governments on complex cross-border M&A, project development and financing transactions, helping clients deliver projects and investments that drive economic growth and energy transition across the continent.