Governor Alex Otti of Abia has backed the proposed $13.1 million compressed natural gas (CNG) project, saying it aligns with the state’s industrialisation agenda and would strengthen clean energy and manufacturing development.

The project, proposed by Earthoc Group and its partners, involves establishing a 14.13 million standard cubic feet per day (MMSCFD) compressed natural gas (CNG) mother station at Owaza in the Ukwa West Local Government Area (LGA).

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

Speaking during a meeting in Nvosi, Isiala Ngwa South Local Government Area on Thursday with the investors, Mr Otti said Owaza had 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 that 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.

Mr Otti said that 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 had 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 internal combustion engine vehicles.

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.

(NAN)