ITbomb:
Bookmarked

This is my dream project after "the pay day". I downloaded on LPG feasibility study book and the cost was frightening. The plan is for the tank farm to be in government designated area which is obviously out of residential area then another retail / service centre at the junction of the residential area.

Do you have a website?

dotsdavidson:
I am interested in this business, kindly satisfy my curiosity below;

1. Is the N5/3.5m quoted inclusive of the cost of land?
2. What are government's requirement as per the land/location of set up?
3. Is the capital sum constant irrespective of location nationwide?

johnstin:


1. No, the quoted N5/3.5m doesn't include the cost of land.
It includes the LPG tank, dispensing unit (pump), piping work and digital scale units.


2. The DPR requires a standard plant to be sited on four plots of land. The minimum distance from a tank and a fixed source of ignition (residential buildings etc) is 15m.

However, several investors in Lagos and Ogun States, just find a convenient space that may not be even up to a plot of land to install 2.5 and 3 Ton tanks.
A good understanding with neigbours is very important for its successful operation.
Many others also partner with filling stations to place their 2.5/3 Ton tanks there.

3. The quoted sum is constant irrespective of the location within Nigeria, but the transportation cost of the tank (s) and other components will be borne by the investor.

P.S If you intend to construct a plant on a piece of land in a residential area, ensure that you seek the approval of the community (especially the house owners adjoining your plant) before proceeding.
This is important because you may find it diffucult or impossible to get the necessary permits if the community members write petitions to the regulatory authorities like DPR, State Land and Physical Planning, etc.

Alternatively, if you suspect the community will kick against it; maybe there are one or two enemies of progress in your community, never disclose to anybody that you are constructing a gas plant.
Apply for and process all the necessary permits before even bringing your tanks to the site.
Your DPR approval process must get to an irreversible stage before you commence visible construction at the site.

We are currently experiencing this very problem with a gas plant sited in a residential area.
The owner of the plant secured the support(albeit reluctantly) of the community at the inception of the project, but they changed their minds in the aftermath of the explosion at the Arakale Gas plant in November, 2014.
Consequently they wrote petitions against the project to DPR, State L&P, Comm. of Police, Town Planning and about four other agencies.

The project is at a standstill as we speak.

laudate:
@johnstin:
The 2.5MT to 5MT is a mini gas skid. What kind of digital filling heads/scales are you planning to install? Do you have a picture that you can share?
How do you connect an LPG Dispensing pump to the tanks? It would be easy to kill 2 birds with one stone, by having an auto gas dispenser connected to the tanks, so you can fill cars and cylinders at different points, simultaneously. Does your cost include fire suppression systems?
What is the average construction time for a mini gas skid?
It is not advisable to construct an LPG plant in a residential area. It is best to look for a commercial site close to the expressway, where LPG trucks that need to carry out delivery of gas to the site can easily turn and manoeuvre their way in and out of the site.

dotsdavidson:


@Johnstin, kindly respond asap. Thanks

dotsdavidson:


Thanks for the insight. If one is looking at a location like Abuja, partnering with a filling station might be the best bet, because one may not be able to get away with inadequate land area specification unlike Lagos and Ogun.

The total cost as spelt out does not require the necessary license/permit cost. What is the estimated total cost of obtaining same.

johnstin:


Siting an LPG plant in a residential area-
Yes, for safety reasons, it is generally not advisable to site an LPG plant havin storage vessels beyond 10 Tons Iin a residential area.
Buy as you may already know, there are several 20 MT capacity plants scattered in residential areas across Lagos.
In siting a 10MT+ plant in a residential area, accessibility of the size by bulk tankers and the size of the land are the most inportant factors to take into consideration.

For example, siting a 20 MT plant on 10 plots of land with very wide access roads and a state-of-the-art fire suppression system in place is not bad.

Thanks

johnstin:

The reason the cost is frightening is because just a few companies/people are into the business of importing gas tanks and constructing gas plants at the moment.
By the time more people venture into it, the cost of the project will invariably reduce.
Our website will come on stream shortly.
Meanwhile, I urge you to conduct more research into the business. You can start frequenting a gas station to see things for yourself.
One more thing, because of the huge cost involved if you want to construct a standars gas plant - say 30 Tons, you can start processing your permits now provided you have some substantial amount now.
You will need the following permits:
1. Police Report
2. Fire Planning Approval
3. Town Planning Permit
4. State Land and Physical Planning Permit
5. Department of Petroleum Resources License
You need the following documents to process both the State L&P and DPR permits:
1. Environmental Impact Assessment
2. Mechanical Drawing
3. Architectural Drawing
4. Structural Drawing
5. Electrical Drawing
You still need some more documents for the DPR license, which is the ultimate license needed to operate a gas plant.

WDESAFETY:
@Johnstin, how do I contact you?

laudate:
This picture is unclear. Why is it upside down??

johnstin:
For those who are wary of the danger of fire outbreaks at the station, let me allay your fears by stating that it is quite hard for a gas station to be engulfed in flames, if the basic safety principles are adhered to.

johnstin:
I'm happy to inform LPG investors about our new and very affordable installation package for the 2.5 Tonne (5000 liters) capacity LPG Skid.
This installation package, which features imported fairly used pressure vessels (tanks) goes for 2.5 Million Naira only.
The existing installation package, using brand new LPG tanks, stays at 3.5 Million Naira.
Our imported fairly used tanks are in good condition, pressure tested and have a service lifespan of about 25 years.
We assure you of a professional job that will accelerate the recoupment of your capital in the shortest possible time.
Thank you

hardeymijuh:


@ Johnstin, I am interested in having one of the 2.5T LPG skid. Kindly drop all the information i need to know on edgepro@yahoo.com.

laudate:
Do you sell pressure relief valves?

johnstin:

I will do just that within 24 hours.