By Sophia Afolabi
Abia State Governor Alex Otti has endorsed a proposed $13.1 million Compressed Natural Gas (CNG) project, describing it as a strategic investment that aligns with the state’s industrialization agenda and clean energy drive.
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 at Owaza in Ukwa West Local Government Area. The facility is expected to improve gas utilization, expand energy infrastructure and provide cleaner energy solutions for industries and transportation.
Speaking during a meeting with the investor delegation in Nvosi, Isiala Ngwa South Local Government Area, Otti said Owaza was selected because of its abundant natural gas reserves, which are already being exploited by oil companies operating in the area.
According to the governor, the state government will consider Earthoc Group’s request for five hectares of land at the Abia Industrial and Innovation Park (AIIP), where several manufacturing firms have begun operations. He added that the project is expected to be implemented through a Public-Private Partnership (PPP) arrangement.
Otti said the CNG initiative complements the state’s ongoing investment in electric mobility. He disclosed that about 40 electric buses are already in operation or have been delivered, while another 30 are expected before the end of September.
He noted that the electric buses are supported by stable electricity supplied by Aba Power Limited across Aba North, Aba South and seven neighbouring local government areas.
Despite the state’s investment in electric vehicles, the governor stressed that CNG remains an important part of Abia’s energy strategy.
“CNG-powered vehicles offer lower operating costs and significantly reduced emissions compared to petrol and diesel vehicles. Both electric vehicles and CNG infrastructure will coexist to meet different transportation needs,” he said.
Executive Director of Earthoc Group, Odim Kalu, said the company chose Abia after identifying the absence of a CNG mother station in the South-East and receiving complaints from motorists travelling along the Port Harcourt-Enugu corridor about limited access to CNG refuelling facilities.
Kalu disclosed that about 99 per cent of the engineering preparations for the project had been completed and that construction would begin once the necessary approvals were secured.
He explained that Earthoc Group expanded into CNG vehicle conversion following the Federal Government’s Presidential CNG Initiative launched in 2023. However, inadequate refuelling infrastructure in southern Nigeria slowed adoption, prompting the company to partner with a Chinese engineering firm to develop a network of CNG mother and daughter stations.
Also speaking, Director of Drivemart Automobiles, Chukwudalu Umeobi, said the partnership, which includes Chinese automobile manufacturer Chery Group, aims to strengthen vehicle assembly and distribution within Nigeria.
He added that the investor consortium also includes Fuelbuddy Nigeria and Unity Providus Bank, which are expected to provide financial and technical support for the project.
Umeobi said while Abia has made notable progress in electric vehicle infrastructure, locally processed CNG offers an affordable and practical alternative for commercial transport operators and heavy-duty equipment, positioning the state as a major destination for clean energy investment.
