Abia State Governor Supports $13.1 Million CNG Project
Governor Alex Otti of Abia State has expressed his endorsement for a proposed $13.1 million compressed natural gas (CNG) initiative, noting its alignment with the state’s industrialization goals. He emphasized that this project would significantly contribute to the advancement of clean energy and manufacturing sectors within the region.
Developed by Earthoc Group in collaboration with various partners, the project aims to establish a facility capable of producing 14.13 million standard cubic feet per day (MMSCFD) of CNG in Owaza, located in the Ukwa West Local Government Area. This initiative is geared towards promoting gas utilization, thereby fostering industrial growth.
During a meeting with investors in Nvosi, Isiala Gwa South Local Government Area, Otti highlighted that Owaza is already home to confirmed commercial gas reserves, and various oil companies are actively engaged in exploration and production activities there.
Otti pointed out that the site is ideally suited for this project due to its abundant gas resources, aligning with the state’s ambition to develop an industrial economy. He indicated that the investment would enhance the existing industrial landscape, particularly within the Abia Industrial Innovation Park (AIIP), where numerous manufacturers have commenced operations.
The governor assured investors that the state government would facilitate discussions regarding their request for approximately five hectares of land within the AIIP and collaborate on a potential public-private partnership (PPP) arrangement.
He also detailed that Abia’s electric buses are now powered by continuous electricity supplied by Aba Power Limited to Aba North, Aba South, and seven other local government areas since February 2024. The state government initially procured 20 electric buses, with plans to acquire an additional 50 by the end of September. However, Otti emphasized the remaining relevance of CNG vehicles, citing their cost-effectiveness and lower emissions compared to internal combustion engine vehicles.
Strategic Infrastructure Development in Abia
Earthoc Group Executive Director Odim Kalu shared insights on the plans for a $13.1 million CNG mother station in Dagiza. Kalu asserted that the project will leverage the region’s vast gas reserves and establish Abia as a central hub for CNG infrastructure in Southeast Nigeria.
He explained that the initiative follows the Federal Government’s Presidential CNG Initiative introduced in 2023, which has spurred Earthoc to convert its gasoline- and diesel-powered vehicles to CNG. However, he pointed out the significant barriers presented by the lack of refueling infrastructure in southern Nigeria. To address this issue, Earthoc has partnered with Chinese firms to develop both mother and daughter CNG stations.
Kalu mentioned that feedback from motorists traveling between Port Harcourt and Enugu highlighted a critical need for CNG filling stations in Abia, motivating his investment decision. He emphasized that the company is nearly ready to commence the project, having completed 99% of the preparatory work.
Investment Confidence Bolstered
Kalu described the project’s vision to turn Abia into the first integrated CNG industrial hub in the Southeast, where such a facility does not currently exist. He highlighted that the proposed facility would offer cleaner and more affordable energy to both industrial and transportation sectors, subsequently lowering carbon emissions.
He also mentioned Abia’s strategic location, burgeoning industrial capacity, rising demand for clean energy, the availability of gas deposits in Owaza, and the state government’s dedication to job creation and industrialization as compelling reasons for investment.
Chukwuda Umeobi, the Director of DriveMart Automobiles, announced collaboration efforts with the Abia State Government to further develop the automotive and CNG sectors. As a partner in China’s Chery Group, Umeobi underscored the significance of showcasing business potentials and exploring partnership avenues with the state government to bolster the local automobile industry.
With significant investments already made in electric vehicles, Umeobi noted that CNG remains an attractive, affordable option for many users, complementing the state’s clean energy initiatives. He affirmed that the delegation aimed to present proposals and explore further investment opportunities with the state administration.
