Otti backs establishment of $13.1m CNG project in Abia

Governor Alex Otti of Abia State has backed the proposed 13.1million dollars Compressed Natural Gas (CNG) project, saying it aligns with the state’s industrialisation agenda and would strengthen clean energy and manufacturing development.

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The project, proposed by Earthoc Group and its partners, involves the establishment of a 14.13 million Standard Cubic Feet Per Day (MMSCFD) Compressed Natural Gas (CNG) mother station at Owaza in Ukwa West Local Government Area.

The project is focused on boosting gas utilisation and supporting industrial growth in the state.

Speaking during a meeting at Nvosi, Isiala Ngwa South Local Government Area, on Thursday with the investors, Mr Otti said Owaza has proven commercial gas reserves, with exploration and production activities already being undertaken by different oil companies.

He described the location as ideal for the project because of its abundant gas resources and said the investment fitted into the state’s vision of building an industrial economy.

Mr Otti said the proposed project aligned with the state’s industrialisation agenda, noting that the Abia Industrial and Innovation Park (AIIP), where several manufacturers had begun establishing operations, would provide a suitable location for the investment.

He said the state government would facilitate discussions on the company’s request for about five hectares of land within the AIIP and work with the investors on the proposed Public-Private Partnership (PPP) arrangement.

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Mr Otti said Abia’s electric buses were powered by the uninterrupted electricity supplied by Aba Power Limited to Aba North, Aba South and seven other local government areas since February 2024.

He said the state government initially procured 20 electric buses, while another 20 had arrived, with an additional 30 expected before the end of September.

The governor, however, said CNG vehicles remained relevant because they were cheaper to operate and produced lower emissions than vehicles powered by internal combustion engines.

According to him, consumers would continue to have different transportation preferences, making both electric and CNG-powered vehicles important in the energy transition.

Mr Otti commended the investors and their partners for choosing Abia and expressed optimism that the proposed investment would attract more businesses to the state.

He also assured the delegation that land allocation for their automobile business would not pose a challenge, expressing hope that construction of the proposed facilities would commence soon.

Why Abia

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

Mr Kalu said the project would leverage the area’s abundant gas resources and position Abia as a major hub for compressed natural gas infrastructure in the South-east.

He said his company, which operates in marine logistics, support services and the oil and gas sector, ventured 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 identified the shortage of refuelling infrastructure, particularly in southern Nigeria, as a major obstacle to wider adoption.

He said the company subsequently partnered with a Chinese firm to construct CNG mother and daughter stations to bridge the infrastructure gap.

Mr Kalu said frequent complaints by motorists travelling between Port Harcourt and Enugu over the absence of CNG refilling stations in Abia informed 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,” he said.

Mr Kalu said the proposed facility would provide cleaner and more affordable energy for industries and the transport sector while reducing carbon emissions.

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

The executive director said that although the state had invested significantly in electric vehicles, CNG remained a complementary and cost-effective energy solution for commercial transportation and industries.

He said the project would create jobs, stimulate industrial growth and lower energy costs for businesses.

Earlier, the Director of Drivemart Automobiles, Chukwudalu Umeobi, said his company and its partners were seeking collaboration with the Abia State Government to develop the automobile and CNG sectors in the state.

Mr Umeobi, who is also a partner with Chery Group, an international Chinese automobile brand, said the company was in Abia to introduce its operations and explore areas of partnership with the state government.

He said Cherry Group was involved in the distribution, assembly and production of Cherry vehicles in Nigeria as part of efforts to support the growth of the country’s automobile industry.

According to him, the delegation included representatives of Earthoc Group, Fuelbuddy Nigeria and Unity Providus Bank, all partnering on initiatives to advance CNG infrastructure and clean energy solutions.

Mr Umeobi said that although Abia had made significant investments in electric vehicles, CNG offered a more affordable alternative for many users and could complement the state’s clean energy drive.

He said the delegation was in the state to present its proposals and explore investment opportunities with the state government.

(NAN)