ncolumella:
Obviously, a range of household LP Gas appliances to meet different needs and budgets is essential for new consumer formation. However, demand will be limited until consumer confidence in LP Gas is reestablished. The initial cost will present problems, particularly in extending LP Gas access for the poor. Much can be learned from experience in other countries about the design and manufacture of household appliances adapted to local cooking practices.

slim49z:
Does this feasibility say anything about acquiring land and the big tanks needed for ph and Abuja. Am talking big scale here.

ncolumella:
For Entrepreneurs

ncolumella:
The target for the revitalization of the domestic LP Gas market is to achieve per capita consumption of 3.7 kg per year. This would result in an annual consumption of some 462,500 tons per year, which would mean a retail LP Gas industry of some N37 billion per year. This will generate significant opportunities for existing industry players and new investors. The initial investment needs will be approximately US$130 million. This is to cover the domestic supply project, the rehabilitation and privatization of the butanization depots, the initial replacement of unsafe cylinders, the upgrade of refinery evacuation facilities, and the setting up and resourcing of the new association. The actual costs will largely depend on the chosen option for the domestic supply project, its scale, and whether it is utilizing a new gas stream rather than diverting product destined for export.

tafrica:
OP, could you explain why gas cylinders don't have gauge, is it too expensive to build a cylinder with guage? This is essential to prevent sudden exhaustion of gas during cooking.
Kudos to you.
Can I have your email address?

laudate:


There are several regulators that carry a gauge. Just check in the markets with those who sell new cylinders or check at gas plants where cylinders are refilled.

INDESTRUCTABLEX:


You seem to be familiar with the industry. Do you operate a gas plant?

laudate:


Yep. Been in the industry for a few years.

nitrogen:
Hmmmm.....cool initiative, anyone into this already or planning to, that needs capital, equity, loan, whatever, am ready to give out upto 20% of the initial.

INDESTRUCTABLEX:


Nice. I have someone in it too. Want to startup but still engaged by my country for now.

2-3 months understudying of an actual plant before starting off.

What's the minimum I can start with in terms of mere delivery or actual setup of a plant.

I know it requires DPR licensing or so.

laudate:


It would depend on a lot of factors. I can't give you a figure off the top of my head.

Mini- Gas Skid: You can start with a mini gas skid with one or two filling heads & scales, and a 5MT gas storage tank. I don't advocate anything less than 5MT for starters, because of the need to recoup logistics costs charged by the LPG Gas Trucks that deliver the gas. Total capacity of the Gas tank should be at least 6.5 -7MT in order to make allowance for the required 20% regulatory ullage space to prevent pressure build-up;

Medium Size Skid: You could go for a medium size LPG Storage Skid of 10MT to 15 MT with about 3-4 filling heads and scales, or a digital LPG auto-gas dispenser and 2 filling heads/scales;

Standard Gas Plant: Or you could have a standard 20MT to 30MT LPG Gas Plant with 5-8 filling heads & scale on a standard 4 plots of land.

Please note that you require fires suppression or prevention systems to be installed in each of these locations as well.

With the mini-gas skid, you need less than a plot size, but please ensure it is located in a commercial area close to the expressway, where an LPG Truck bringing the gas can easily turn and manoeuvre to discharge its contents into your storage tank. Accessibility is very important.

You could also arrange to lease space in an already existing petrol station, to place your mini gas skid there, in order to attract customers and get visibility.

With a medium sized gas plant, you would also need to have at least 2 plots or more (need to check the DPR guidelines);

With a standard size gas plant, at least 4 plots is required. Safety, security, proper installation and accessibility is very important.

Provision of adequate fire extinguishers, laying of pipes, valves, connectors, security and safety equipment adds to the cost of setting up the LPG skid or plant. A price cannot be given, as a survey would first have to be conducted, to ascertain the kind of civil works to be carried out to install the gas skid or gas plant, the type of equipment selected and all the other costs associated with provision of fire prevention systems.

Finally, DPR Licensing is required for all these different types of gas plants.

Kindly read the DPR guidelines for more information: https://dpr.gov.ng/wp-content/uploads/2014/02/Procedure-Guide-for-Construction-of-LPG-Filling-Plant-and-Autogas-Station.pdf