Otti supports $13.1 million CNG project in Abia State

Governor Alex Otti of Abia State has shown support for the planned 13.1 million dollars Compressed Natural Gas (CNG) project. He said this project matches the state’s goal of industrial growth and will promote clean energy and manufacturing.

The project, brought forward by Earthoc Group and its partners, will involve setting up a 14.13 million Standard Cubic Feet Per Day (MMSCFD) CNG mother station in Owaza, located in Ukwa West Local Government Area.

This initiative aims to improve gas use and back industrial development in the state.

During a meeting held at Nvosi in Isiala Ngwa South Local Government Area on Thursday, Mr Otti told the investors that Owaza has proven gas reserves. He mentioned that oil companies are already exploring and producing gas in the area.

He called Owaza the right place for the project due to its plentiful gas resources. He added that this investment fits well with Abia’s vision of creating an industrial economy.

Mr Otti stated that the proposed project aligns with the state’s industrialisation plan. He pointed out that the Abia Industrial and Innovation Park (AIIP) is where many manufacturers have started setting up operations. This park would be a good spot for the investment.

He also mentioned that the state government would support discussions about the company's request for about five hectares of land within the AIIP. They are ready to work with the investors on the proposed Public-Private Partnership (PPP) deal.

Mr Otti highlighted that Abia’s electric buses are powered by steady electricity from Aba Power Limited, which has been supplying power to Aba North, Aba South, and seven other local government areas since February 2024.

He noted that the state government bought 20 electric buses initially, with another 20 having arrived. An extra 30 are expected before the end of September.

The governor stated that CNG vehicles are still important because they cost less to run and emit fewer pollutants than those using internal combustion engines. He said consumers will have different choices in transport, making both electric and CNG-powered vehicles necessary in the shift towards cleaner energy.

Mr Otti praised the investors and their partners for selecting Abia and expressed hope that this investment will draw more businesses to the state. He assured the delegation that land allocation for their automobile business would not be a problem, and he is hopeful that construction of the new facilities will start soon.

Earlier, the Executive Director of Earthoc Group, Odim Kalu, shared that the company plans to invest about 13.1 million dollars to develop the 14.13 MMSCFD CNG mother station in Owaza. He mentioned that the project would use the area’s gas resources and make Abia a key center for CNG infrastructure in the South-east.

Mr Kalu explained that his company, which works in marine logistics, support services, and the oil and gas sector, decided to enter the CNG market after the federal government launched the Presidential CNG Initiative in 2023.

He said the company started converting petrol and diesel vehicles, trucks, and generators to CNG but found that the lack of refueling stations, especially in southern Nigeria, was a big challenge.

To address this, the company teamed up with a Chinese firm to build CNG mother and daughter stations to fill this gap.

Mr Kalu noted that complaints from drivers traveling between Port Harcourt and Enugu about the lack of CNG refilling stations in Abia influenced their decision to invest in the state.

"We have completed about 99 percent of the preparatory work and are ready to start the project. Our vision is to make Abia the first integrated CNG industrial hub in the South-east, where there are currently no CNG mother stations," he said.

Mr Kalu believes the new facility will offer cleaner and cheaper energy for industries and transport while also lowering carbon emissions. He described Abia as a great place for investment due to its strategic location, growing industrial base, demand for clean energy, gas reserves in Owaza, and the state government’s focus on industrial growth and job creation.

He added that although the state has invested a lot in electric vehicles, CNG remains a useful and cost-effective energy option for commercial transport and industries. He believes the project will create jobs, boost industrial growth, and reduce energy costs for businesses.