Governor Alex Otti of Abia State has endorsed a proposed $13.1 million Compressed Natural Gas (CNG) project, describing it as a strategic investment that aligns with the state’s industrialisation agenda and clean energy transition.
The project, proposed by Earthoc Group and its partners, involves the construction of a 14.13 million standard cubic feet per day (MMSCFD) CNG mother station in Owaza, Ukwa West Local Government Area, to enhance gas utilisation and drive industrial growth in the state.
Speaking during a meeting with the investors on Thursday at Nvosi, Isiala Ngwa South Local Government Area, Otti said Owaza’s proven commercial gas reserves and ongoing exploration activities by oil companies made it an ideal location for the investment.
According to the governor, the project fits into his administration’s vision of transforming Abia into an industrial hub while promoting cleaner and more sustainable energy solutions.
He noted that the Abia Industrial and Innovation Park (AIIP), where several manufacturers have begun establishing operations, offers a suitable environment for the project.
Otti assured the investors that the state government would facilitate discussions on their request for about five hectares of land within the AIIP and support the proposed Public-Private Partnership (PPP) arrangement.
The governor also highlighted the state’s growing investment in clean transportation, noting that Abia’s electric buses are powered by uninterrupted electricity supplied by Aba Power Limited to Aba North, Aba South and seven other local government areas since February 2024.
He disclosed that the state initially acquired 20 electric buses, with another 20 already delivered and an additional 30 expected before the end of September.
Despite the investment in electric vehicles, Otti said CNG-powered vehicles remained an important part of Nigeria’s energy transition because they are cheaper to operate and produce lower emissions than conventional petrol and diesel vehicles.
According to him, both electric and CNG vehicles would continue to coexist as consumers adopt different transportation options.
He commended Earthoc Group and its partners for choosing Abia for the investment, expressing confidence that the project would attract more industries and create employment opportunities.
Otti further assured the investors that land allocation for their automobile business would not be a challenge, adding that he looked forward to the commencement of construction.
Earlier, Executive Director of Earthoc Group, Mr Odim Kalu, said the company planned to invest about $13.1 million in the development of the 14.13 MMSCFD CNG mother station in Owaza.
Kalu said the project would leverage the area’s abundant gas resources and position Abia as the leading hub for compressed natural gas infrastructure in the South-East.
He explained that the company, which operates in marine logistics, support services and the oil and gas sector, ventured into CNG conversion following the Federal Government’s Presidential CNG Initiative launched in 2023.
According to him, the company has been converting petrol and diesel-powered vehicles, trucks and generators to CNG but identified inadequate refuelling infrastructure, particularly in southern Nigeria, as a major obstacle to wider adoption.
To address the challenge, he said Earthoc Group partnered with a Chinese firm to develop CNG mother and daughter stations across the region.
Kalu said frequent complaints from motorists travelling between Port Harcourt and Enugu over the absence of CNG refuelling stations in Abia influenced the company’s decision to invest in the state.
READ ALSO: Abia Completes Digital Land Mapping, Expands Healthcare, Housing and Infrastructure, Says Otti
“We have completed about 99 percent of the preparatory work and are ready to commence the project. Our vision is to position Abia as the first integrated CNG industrial hub in the South-East, where there are currently no CNG mother stations,” he said.
He added that the proposed facility would provide cleaner and more affordable energy for industries and the transport sector while helping to reduce carbon emissions.
Kalu described Abia as an attractive investment destination because of its strategic location, growing industrial base, abundant gas deposits in Owaza, expanding demand for clean energy and the state government’s commitment to industrialisation and job creation.
He noted that while the state had invested heavily in electric vehicles, CNG remained a cost-effective complementary energy solution for commercial transportation and industrial operations.
According to him, the project is expected to create jobs, stimulate industrial growth and reduce energy costs for businesses.
Also speaking, Director of Drivemart Automobiles, Mr Chukwudalu Umeobi, said the company and its partners were seeking collaboration with the Abia State Government to expand the automobile and CNG sectors.
Umeobi, a partner of the Chinese automobile manufacturer Chery Group, said the company was in Abia to introduce its operations and explore areas of partnership with the government.
He explained that Chery Group is involved in the distribution, assembly and production of Chery vehicles in Nigeria as part of efforts to strengthen the country’s automobile industry.
According to him, the delegation also included representatives of Earthoc Group, Fuelbuddy Nigeria and Unity Providus Bank, all collaborating to expand CNG infrastructure and clean energy solutions.
Umeobi added that although Abia had made significant investments in electric vehicles, CNG offered a more affordable option for many users and would complement the state’s clean energy strategy.
He said the visit was aimed at presenting the group’s investment proposals and exploring areas of collaboration with the state government.
