ncolumella:
The DPR Procedure and Requirements for the Grant of Approval to construct a liquefied petroleum gas plant includes “cylinder maintenance facilities” as a condition of initial licensing. Cylinder maintenance might include minor repairs such as valve replacement. Following its recent review of regulations, the DPR plans to specify cylinder-testing equipment in new license applications. Cylinder testing for requalification is a specialist procedure and technically more demanding than routine maintenance.

ncolumella:
Clearly, a growing LP Gas market will require additional cylinders. There are advances in cylinder technology, which will be explored. Irrespective of technology, funding will be required for new cylinders and to bring existing cylinders (where practical) to an acceptable standard. Neither the industry nor its customers can be expected to bear this burden without assistance. However, a project to produce composite cylinders at competitive prices in Nigeria would benefit from growing regional markets, in addition to growing domestic demand.

ncolumella:
The existing LP Gas road tanker stock is in generally very poor condition and is inadequate to cater for an expanding buoyant market. In general the industry needs newer, safer tankers and the services of capable haulage contractors to participate in a rational pattern of primary and secondary road transport distribution. The responsibility for primary transport of LP Gas to the primary depots should be taken on by the company, or companies, operating the depots. Debottlenecking in the port of Lagos will require government intervention. It will be the responsibility of the marketers/ distributors to organize their own transport from the primary depots to their own filling plants throughout the country.

ncolumella:
LP Gas is sold on a self-collect basis and, for urban and peri-urban dwellers, is normally available within about 10 minutes (by vehicle). Kerosene availability is within about 5 minutes.

ncolumella:
A preference for larger (12.5 kg and 50 kg) cylinders may be influenced by concerns about continuity of supply and greater familiarity with these rather than smaller sizes.

ncolumella:
One of the principal barriers to switching to LP Gas for potential customers is the initial cost of the equipment. One cluster in the urban middle-income group stated that they had access to credit. On enquiry however, it was established that these respondents all worked in the same organization and that the staff had set up an incompany cooperative. The majority of respondents did not have access to consumer credit and the survey did not disclose any microfinance or easy payment system which could be relevant to the acquisition of LP Gas equipment.

ncolumella:
A disturbing number of existing LP Gas consumers thought that the product is not safe and this perception extended to nonusers also. Respondents quoted both direct and anecdotal accident experiences.

ncolumella:
For Entrepreneurs

ncolumella:
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