Abia Moves To Become South-East CNG Hub As Otti Endorses $13.1m Gas Investment

Abia Moves To Become South-East CNG Hub As Otti Endorses $13.1m Gas Investment

Abia State Governor, Dr Alex Otti, has endorsed a proposed 13.1-million-dollar Compressed Natural Gas (CNG) project, saying it would 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.
Speaking on Thursday while receiving a delegation from Earthoc Group and its partners in his office at Nvosi, Isiala Ngwa South LGA, Governor Otti said the project aligns with his administration’s long-term vision of building an industrial economy anchored on the state’s natural resource endowments.
The governor 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 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 across Aba North, Aba South and seven other 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 remaines an important component of Nigeria’s evolving energy mix because of its lower operating costs and environmental advantages.
According to him, consumers would 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 would not be a challenge expressed optimism that construction of the facilities would commence soon. Earlier, the Executive Director of Earthoc Group, Mr Odim Kalu, said the company planned to invest about 13.1 million dollars in developing the 14.13 MMSCFD CNG mother station at Owaza.
He said 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 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 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.

He added that although the state had invested significantly in electric vehicles, CNG remained a complementary and cost-effective energy solution for commercial transportation and industries.
According to him, the project would create jobs, stimulate industrial expansion and reduce energy costs for businesses.
Also speaking, the Director of Drivemart Autos and Drivemart Automobiles, Mr Chukwudalu Umeobi, said his company and its partners were seeking collaboration with the Abia State Government to expand the automobile and CNG sectors.
Umeobi, who is also a partner with Kaloa Cherry Group, an international Chinese automobile brand, said the company was in Abia to introduce its operations and explore investment opportunities with the state government.
He said Kaloa Cherry Group was engaged in the distribution, assembly and production of Cherry vehicles in Nigeria to support the development of the country’s automobile industry.
According to him, the delegation comprised representatives of Earthoc Group, Fuelbuddy Nigeria and Unity Providus Bank, all collaborating on initiatives aimed at advancing CNG infrastructure and clean energy solutions.
Umeobi said that although Abia had made substantial investments in electric vehicles, CNG offered a more affordable alternative for many users and would complement the state’s clean energy agenda.
He added that the visit provided an opportunity to present the group’s investment proposals and explore areas of partnership with the state government. The post Abia Moves To Become South-East CNG Hub As Otti Endorses $13.1m Gas Investment first appeared on National Ambassador News. Abia State, Abia State Government, Federal Government, Finance & Economic Development, National News, News, Projects, Spotlight, Trending