Key points
- Abia State has endorsed a proposed $13.1 million CNG project in Owaza.
- The project includes a 14.13 MMSCFD CNG mother station to support industrial and transport energy needs.
- Governor Alex Otti says the investment aligns with the state’s industrialisation agenda.
- The project aims to position Abia as the South-East’s first integrated CNG hub.
Main story
Governor Alex Otti has expressed support for a proposed 13.1 million dollar Compressed Natural Gas (CNG) project, saying it aligns with Abia State’s industrialisation agenda and efforts to expand clean energy and manufacturing.
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 designed to improve gas utilisation and support industrial development in the state.
Speaking during a meeting with the investors in Nvosi, Isiala Ngwa South Local Government Area, Otti said Owaza’s proven commercial gas reserves and ongoing oil and gas operations made it an ideal location for the investment.
He said the project aligns with the state’s vision of building an industrial economy and noted that the Abia Industrial and Innovation Park (AIIP), where manufacturers are establishing operations, would provide a suitable location for the development.
The governor said the state government would facilitate discussions on the investors’ request for about five hectares of land within the AIIP and work with them on a proposed Public-Private Partnership (PPP) arrangement.
Otti also highlighted the state’s investment in electric mobility, noting that Abia’s electric buses have operated on uninterrupted power supplied by Aba Power Limited since February 2024.
He said the government initially procured 20 electric buses, with another 20 already delivered and an additional 30 expected before the end of September.
Despite the state’s push for electric vehicles, Otti said CNG-powered vehicles remain important because they are cheaper to operate and produce fewer emissions than conventional petrol and diesel vehicles.
He added that both electric and CNG vehicles would play complementary roles in Nigeria’s energy transition, given varying consumer and commercial transportation needs.
Earlier, Earthoc Group Executive Director, Mr Odim Kalu, said the company planned to invest about 13.1 million dollars in developing the CNG mother station to leverage Owaza’s gas resources and establish Abia as a major CNG hub in the South-East.
Kalu said the company entered the CNG conversion business following the Federal Government’s Presidential CNG Initiative launched in 2023 but identified the shortage of refuelling infrastructure, particularly in southern Nigeria, as a major barrier to adoption.
He said Earthoc subsequently partnered with a Chinese company to develop CNG mother and daughter stations to address the infrastructure gap.
According to him, motorists travelling between Port Harcourt and Enugu frequently complained about the absence of CNG refuelling stations in Abia, prompting the proposed investment.
Kalu said preparatory work on the project was about 99 per cent complete and construction could begin soon.
He added that the project would provide cleaner and more affordable energy for industries and transport operators, create jobs and lower energy costs for businesses.
Also speaking, Director of Drivemart Automobiles, Mr Chukwudalu Umeobi, said his company and its partners, including Chery Group, Earthoc Group, Fuelbuddy Nigeria and Unity Providus Bank, were seeking collaboration with the Abia Government to expand the state’s automobile and CNG sectors.
He said CNG offered a cost-effective complement to Abia’s electric vehicle programme and would strengthen the state’s broader clean energy strategy.
The issues
As Nigeria promotes cleaner transport through its Presidential CNG Initiative, the expansion of refuelling infrastructure has emerged as a critical challenge. Investments in CNG stations are expected to improve fuel availability, lower transport costs and support industrial energy needs, particularly in regions with abundant natural gas resources.
What’s being said
“Consumers will continue to have different transportation preferences, making both electric and CNG-powered vehicles important in the energy transition.” — Governor Alex Otti
What’s next
The Abia Government and investors are expected to conclude land allocation and partnership arrangements before construction of the proposed CNG facility begins.
Bottom line
If completed, the project could establish Abia as the South-East’s first integrated CNG hub, supporting industrial growth, cleaner transportation and wider adoption of natural gas as an alternative fuel.
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