Powergas

Expanding Access to Cleaner Energy Through Virtual Pipelines

As Africa accelerates its transition to cleaner energy and gas-based industrialization, innovative gas distribution models are helping to bridge critical infrastructure gaps. Powergas is a pioneer in compressed natural gas (CNG) solutions in Nigeria and is at the forefront of this transformation, delivering natural gas from “where it is available to where it is needed". With a fast-growing footprint and ambitions that extend beyond Nigeria’s borders, Powergas is spearheading the adoption of CNG across the continent.

Name

Powergas

Address

Lagos, Nigeria

Incorporation Date

November 2012

Employees

~200

Business/Services

Powergas is a leading CNG solutions provider specializing in the production, compression, and virtual distribution of natural gas across Nigeria. The company operates multiple CNG plants and mother stations, supplying natural gas to industrial and commercial users across Nigeria.

Company History and Expertise

Founded over a decade ago with a mission to unlock cleaner, more accessible fuel alternatives for transport, industries and power producers, Powergas has grown into a leading private-sector developer, producer, and distributor of compressed natural gas in Nigeria. The company built Sub-Saharan Africa’s first CNG plant in 2009 and has since grown into a dominant force in the virtual pipeline space, operating five CNG plants with a combined capacity of 45 million standard cubic feet per day (MMscf/d), including expansion projects scheduled for 2025.

Powergas operates four mother stations in Ikorodu (Lagos), Ogbele (Rivers), Ebedei (Delta), and Ore (Ondo), with a fifth station under development in Ajaokuta to serve Nigeria’s North Central region. Through a proprietary “Gas on Wheels” model, Powergas has delivered over 500 million standard cubic metres (scm) of CNG to clients across Nigeria with a 100% safety record since inception.

With more than 240 tube skids and over 100 dedicated trucks, the company’s logistics capability underpins its market-leading delivery performance. Powergas maintains strategic supply alliances with leading upstream producers and is trusted by major industrial and commercial customers, including Nigerian Breweries, Coca-Cola, BAT, Seven-Up Bottling Company, Dufil Prima, Globeleq, and Hayat Kimya.

Current Projects and Future Strategy

Powergas is actively expanding its infrastructure footprint to meet rising demand for cleaner energy solutions. A key element of this strategy is the development of a new mother station in Ajaokuta, which will serve Nigeria’s North Central region and extend the company’s delivery reach deep into new markets. In addition to CNG plant upgrades and network extensions, Powergas is pursuing diversification into small-scale LNG and hydrogen pilot projects, reflecting a commitment to innovation and long-term energy transition alignment.

Regionally, the company is exploring opportunities to replicate its virtual pipeline model in other West African markets, targeting industrial clusters and underserved economic zones with no access to gas pipeline infrastructure. Through strategic partnerships and policy engagement, Powergas aims to establish itself as a central player in Africa’s distributed gas infrastructure landscape, offering scalable solutions that respond to the continent’s diverse energy challenges.

Sustainability and Energy Transition Alignment

Powergas plays a critical role in Nigeria’s broader energy transition agenda by reducing dependence on diesel and other high-emission fuels. Its virtual pipeline model enables faster adoption of gas in industrial and transportation sectors, helping cut carbon dioxide emissions by up to 30% in industrial use and 15% in heavy-duty transport. By sourcing gas from stranded and underutilized wells, the company supports flare reduction efforts and contributes to methane abatement across the value chain. Off-pipeline CNG delivery also reduces leakage risks associated with aging pipeline infrastructure, further enhancing the climate value of its operations. As global pressure to decarbonize intensifies, Powergas offers a compelling pathway to cleaner growth, grounded in practical delivery, safety, and scalability.

Statistics

Strategic Insights about African Gas

We believe that everyone should have access to comprehensive data on African gas markets. That’s why we are working to compile an Annual Statistical Review: a yearly reference of reliable and up-to-date data and statistics, freely accessible to anyone globally, covering the entire value chain of Africa's gas sector.

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