Abia State governor backs $13.1 million CNG project to boost industrialization

Abia State Governor Alex Otti has thrown his support behind a significant $13.1 million Compressed Natural Gas (CNG) project, viewing it as a key initiative to bolster the state's industrialization agenda and advance clean energy development. The project, spearheaded by Earthoc Group and its partners, involves establishing a substantial CNG mother station in Owaza, Ukwa West Local Government Area, with a daily capacity of 14.13 million Standard Cubic Feet.

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Owaza has proven commercial gas reserves, with exploration and production activities already being undertaken by different oil companies.

During a meeting with investors, Governor Otti highlighted Owaza's proven commercial gas reserves and ongoing exploration activities as ideal factors for the project's success. He emphasized that this investment perfectly aligns with Abia's vision of building an industrial economy and complements existing initiatives like the Abia Industrial and Innovation Park (AIIP), where several manufacturers have already begun operations. The state government has pledged to facilitate the company's request for approximately five hectares of land within the AIIP and collaborate on a Public-Private Partnership (PPP) arrangement.

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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.

The governor also touched upon Abia's progress in sustainable transportation, noting that the state's electric buses are powered by uninterrupted electricity from Aba Power Limited. While Abia has procured numerous electric buses, Otti stressed the continued relevance of CNG vehicles due to their lower operating costs and reduced emissions compared to traditional internal combustion engines. He believes that offering both electric and CNG options is crucial for the energy transition, catering to diverse consumer preferences.

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

Otti commended the investors for choosing Abia and expressed optimism that this project will serve as a catalyst for attracting more businesses to the state. The Executive Director of Earthoc Group, Odim Kalu, confirmed the investment amount and stated the project's aim to position Abia as a major hub for CNG infrastructure in the South-east, leveraging the region's abundant gas resources. The company's existing operations span marine logistics, support services, and the oil and gas sector.

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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.