Abia State Governor Alex Otti has expressed support for 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 efforts to expand clean energy and manufacturing development.
The project, proposed by Earthoc Group and its partners, involves the establishment of a 14.13 million Standard Cubic Feet Per Day (MMSCFD) CNG mother station in Owaza, Ukwa West Local Government Area of Abia State.
The facility is expected to improve gas utilisation, support industrial activities and strengthen clean energy infrastructure across the state.
Speaking during a meeting with investors at Nvosi, Isiala Ngwa South Local Government Area on Thursday, Otti said Owaza was an ideal location for the project due to its proven commercial gas reserves, with exploration and production activities already being carried out by various oil companies.
He said the investment aligned with the state government’s vision of developing an industrial economy, adding that the Abia Industrial and Innovation Park (AIIP), where several manufacturers have started establishing operations, would provide a suitable environment for the project.
Otti said the state government would facilitate discussions around the company’s request for about five hectares of land within the AIIP and collaborate with the investors on the proposed Public-Private Partnership (PPP) arrangement.
The governor also highlighted the role of existing energy initiatives in the state, noting that Abia’s electric buses were powered by uninterrupted electricity supplied by Aba Power Limited to Aba North, Aba South and seven other local government areas since February 2024.
He said the government had initially procured 20 electric buses, with another 20 already delivered and an additional 30 expected before the end of September.
However, Otti stressed that CNG vehicles remained an important alternative because they were cheaper to operate and produced fewer emissions compared with vehicles powered by internal combustion engines.
According to him, consumers would continue to have different transportation preferences, making both electric and CNG-powered vehicles important components of the transition towards cleaner energy.
The governor commended Earthoc Group and its partners for choosing Abia for the investment, expressing optimism that the project would attract more businesses and strengthen the state’s industrial landscape.
He also assured the delegation that land allocation for their automobile business would not be a challenge, expressing hope that construction of the proposed facilities would begin soon.
Earlier, the Executive Director of Earthoc Group, Mr Odim Kalu, said the company planned to invest about $13.1 million in developing 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 a major CNG infrastructure hub in the South-East.
He explained that the company, which operates in marine logistics, support services and the oil and gas sector, entered the CNG conversion business following the Federal Government’s Presidential CNG Initiative introduced in 2023.
According to him, the company began converting petrol and diesel-powered vehicles, trucks and generators to CNG but identified inadequate refuelling infrastructure, particularly in southern Nigeria, as a major challenge to wider adoption.
He said the company later partnered with a Chinese firm to develop CNG mother and daughter stations to address the infrastructure gap.
Kalu said concerns from motorists travelling between Port Harcourt and Enugu over the lack of CNG refuelling stations in Abia influenced the decision to invest in the state.
“We have completed about 99 per cent 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 said 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 due to its strategic location, growing industrial base, increasing demand for clean energy, gas deposits in Owaza and the state government’s commitment to industrialisation and job creation.
He added that while the state had made significant investments in electric vehicles, CNG remained a complementary and cost-effective energy solution for commercial transportation and industrial users.
According to him, the project would create jobs, stimulate industrial development and reduce energy costs for businesses.
Earlier, the Director of Drivemart Automobiles, Mr Chukwudalu Umeobi, said his company and its partners were seeking collaboration with the Abia State Government to develop the automobile and CNG sectors.
Umeobi, who is also a partner with Chinese automobile manufacturer Chery Group, said the company was in Abia to introduce its operations and explore partnership opportunities with the state government.
He said Chery Group was involved in the distribution, assembly and production of vehicles in Nigeria as part of efforts to support the growth of the country’s automobile industry.
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