Otti endorses $13.1m CNG investment to accelerate industrialisation in Abia

Governor Alex Otti of Abia State, has endorsed a proposed $13.1 million Compressed Natural Gas (CNG) project, saying it will accelerate industrialisation, expand clean energy infrastructure and position the state as a major manufacturing destination in Nigeria.

The proposed project involves the construction of a 14.13 million standard cubic feet per day (MMSCFD) CNG mother station at Owaza in Ukwa West Local Government Area, a move expected to deepen gas utilisation, support industries and improve access to cleaner energy for transportation and manufacturing.

Governor Otti, while hosting a delegation from Earthoc Group and its partners in his office at Nvosi, Isiala Ngwa South Local Government Area, said that the project aligned with his administration’s long-term vision of building an industrial economy anchored on the state’s natural resource endowments.

He noted that Owaza already possesses proven commercial gas reserves with exploration and production activities being undertaken by different oil companies, which makes it a suitable location for the investment.

He also pointed to the ongoing development of the Abia Industrial and Innovation Park (AIIP), where manufacturers had begun establishing operations, as an ideal site for the proposed investment.

Governor Otti said that the State Government would facilitate discussions on the investors’ request for about five hectares of land within the AIIP and collaborate with them on the proposed Public-Private Partnership (PPP) arrangement.

Responding to concerns over the State’s growing investment in electric mobility, the governor explained that Abia’s electric buses were powered by the stable electricity supplied by Aba Power in its ring fence, comprising nine local government areas, since February 2024.

He disclosed that the State initially acquired 20 electric buses while another 20 had already arrived with an additional 30 expected before the end of September.

The governor, however, maintained that CNG remains an important component of Nigeria’s evolving energy mix because of its lower operating costs and environmental advantages.

According to him, consumers will continue to adopt different transport options, making both electric and CNG-powered vehicles essential to the country’s transition to cleaner energy.

Governor Otti commended the investors for choosing Abia and expressed confidence that the proposed project would attract additional investments into the state.

He also assured the delegation that securing land for their proposed automobile business will not be a challenge and expressed optimism that construction of the facilities would commence soon.

Odim Kalu, Executive Director, Earthoc Group, said that the company planned to invest about $13.1 million in developing the 14.13 MMSCFD CNG mother station at Owaza.

He said that the project would.harness the area’s abundant gas reserves and establish Abia, as a leading hub for compressed natural gas infrastructure in the South-East.

Kalu explained that the company, which operates in marine logistics, support services and the oil and gas sector, diversified into CNG conversion 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 soon identified the shortage of refuelling infrastructure, particularly across southern Nigeria, as a major constraint to wider adoption.

He said that Earthoc Group subsequently partnered with a Chinese firm to develop CNG mother and daughter stations to bridge the infrastructure gap.

Kalu added that frequent complaints from motorists travelling between Port Harcourt and Enugu over the absence of CNG refilling stations in Abia influenced the company’s 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”, Kalu stated

He said that the proposed facility would provide cleaner and more affordable energy for industries and the transport sector as well as reduce carbon emissions.

Kalu described Abia as an attractive investment destination because of its strategic location, growing industrial base, increasing demand for clean energy, abundant gas deposits in Owaza and the state government’s commitment to industrialisation and job creation.