So far you have said all the good stuff about the business. What are the downside?

Like how accident-prone
Challenges of the business
Failure rate of business

Can a single licence be used to operate several mini-plants at different locations/sites? E.g. in Lagos, Ibadan & Illorin using same DPR licence.

If more info material please email to:

area.fada@yahoo.com

AreaFada2:
So far you have said all the good stuff about the business. What are the downside?

Like how accident-prone
Challenges of the business
Failure rate of business

Can a single licence be used to operate several mini-plants and different locations/site? E.g. in Lagos, Ibadan & Illorin using same DPR licence.

If more info material please email to:

Good morning,

Good questions you have asked. I would answer your questions as asked

ACCIDENTS:

● Safety is a core necessity in the oil and gas industry. 80% of accidents are caused due to non adherence to safety rules by operators. We give free HSE training to our clients during purchase of the plant. Our training is a one day IGSA process with practical sections and videos on the best practices on running and managing a gas plant to conform with best international practices and standard HSE processes.

● Our plants also comes with all require safety features like the emergency shut off value, 2 fire extinguisher and a fire proof pump.

● Our plants undergoes Pressure Testing and Quality Assurance Test of all the installations and the volume of the storage tank to ensure all the tank and filling process is running smoothly without any hitches

BUSINESS CHALLENGES

● Sitting your plant in a none profitable location: The daily target sale of your plant should be a minium 33 cylinders daily. To achieve this is actuqlly very easy with a good location. If you are not selling as aspected, This would require you move the plant another location.

● Sitting your plant In a highly competitive environment: Even though competition in the LPG industry is still less, there some environment already occupied by bigger plants which we advise that you first conduct a market research on your environment before sitting your plant.

FAILURE RATE:

Failure rate in this business is 0 as long as you sit your plant in a residential environment with a good marketing strategy to attract and retain customers.

LICENCES

No. A single licence cannot be used to operate more than one plant. The cost of acquiring a licence from state to state differs. But I can tell you that you won't spend more than N250, 000 in getting your licence for a skid plant.

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good morning

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good morning

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upper

Thanks for your prompt reply sir.

Thank you Area Fada

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good morning

Sir I think the cost of starting the business is still high for most average people. And not everyone is comfortable with loans in 9ja. Anyway to reduce initial capital outlay to 2 to 2.5m?

good evening

good morning

AreaFada2:
Sir I think the cost of starting the business is still high for most average people. And not everyone is comfortable with loans in 9ja. Anyway to reduce initial capital outlay to 2 to 2.5m?

N2.5million is the cost of building a plant that would one day explode and probably kill someone. so I won't advise you to procure such a plant and I cannot build a 2.5ton plant for you for that amount as our plants are built to standards and certified and this cost money but we have a professionally written business plan that you can buy and use it to Seek for loans or investors.
currently BOI is massively giving out loans and CBN are also giving out loans through the commercial banks at 9% interest rate

ncolumella:



N2.5million is the cost of building a plant that would one day explode and probably kill someone. so I won't advise you to procure such a plant and I cannot build a 2.5ton plant for you for that amount as our plants are built to standards and certified and this cost money but we have a professionally written business plan that you can buy and use it to Seek for loans or investors.
currently BOI is massively giving out loans and CBN are also giving out loans through the commercial banks at 9% interest rate

Lol @ bolded.

Water borehole used to be very expensive in the 1980s . Towards end of 1990s, even my humble self was able to afford one. Ways have been found to cut down cost without compromising safety.

Thanks for the funding info.

AreaFada2:


Lol @ bolded.

Water borehole used to be very expensive in the 1980s . Towards end of 1990s, even my humble self was able to afford one. Ways have been found to cut down cost without compromising safety.

Thanks for the funding info.

hahahahahah

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mornin

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Evening

[quote author=ncolumella post=418675


Nice job mr William,I have some question I will love to ask you.
1)where is your manufacturing location?
2)Please are you saying you will transport the package unit to any location in Nigeria.e.g akwa ibom
3) What are other safety designs do have on the vessels, safety devices like psv and also nitrogen purge supply lines.
4)Other things like flame arrestor on the supply pipe to the pump.
5) Gas leak sensors around the pump to help indicate gas leak around the supply cabinet box.

You didn't mention this as part of your design features that why I am asking. I hoping to have one in the near future if your product will have these feature. I am concern more about the safety of operation. remember the recent incidence in anambra State.
You are doing a great job I must confess.

a new day

iykmon:
[quote author=ncolumella post=418675


Nice job mr William,I have some question I will love to ask you.
1)where is your manufacturing location?
2)Please are you saying you will transport the package unit to any location in Nigeria.e.g akwa ibom
3) What are other safety designs do have on the vessels, safety devices like psv and also nitrogen purge supply lines.
4)Other things like flame arrestor on the supply pipe to the pump.
5) Gas leak sensors around the pump to help indicate gas leak around the supply cabinet box.

You didn't mention this as part of your design features that why I am asking. I hoping to have one in the near future if your product will have these feature. I am concern more about the safety of operation. remember the recent incidence in anambra State.
You are doing a great job I must confess.

Good morning!

1. our manufacturing plant is in Festac Lagos
2. yes we would transport to any location or area in Nigeria
3/4/5. Our plant would be certified as safe by a 3rd party company representing DPR before delivery to you. we would also give to you the certification papers.

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good evening

I think one of the biggest challenges you haven't mentioned about this investment is the uncertainty in supply... I am from the North and I have seen investments like this crumble to standstill due to inconsistency in supply from the main source. Inconsistency in supply could prove very risky to this investment. Could you kindly address this issue. thank you


● Yes, just a very small fraction of Nigerians uses LPG as a cooking energy. in fact, Just 30% of our population uses LPG as a cooking energy. Nigeria consumes the lowest LPG in Sub Sahara Africa and the government is massively promoting the use of LPG for various reasons which also includes Environmental and health issues.
In the past 4years, there has been a tremendous increase in the demand for the product. we went from 110,00mt per annum to over 270, 000mt per ammum in just 4years.
once the government can successfully convert the rest of the population (70%) not using LPG for cooking, we should be consuming over 1.5millionMt per annum


#InvestNow[/quote]

[quote author=mujeebmuhsin post=42112874]I think one of the biggest challenges you haven't mentioned about this investment is the uncertainty in supply... I am from the North and I have seen investments like this crumble to standstill due to inconsistency in supply from the main source. Inconsistency in supply could prove very risky to this investment. Could you kindly address this issue. thank you/quote]

Yes one of the major problems with the use of LPG in the north is cost (transporting gas from Lagos to the north) and lack of infrastructure like InLand Depos and Refilling plants but this calls for more investment in the sector.
There are gas companies that supply gas to refilling plants like Oando, AA Rano and many other private sector.

Also, the use of LPG in the north is still very low.....government needs to implement and enforce the usage of lpg to reduce deforestation and desertification in the north.

purchasing power of the north is also low compared to the south except in few states and cities.

I am seriously looking in to this investment. I understand that location is very crucial and I am therefore looking beyond my state for a good location. I will contact you once i get a good location at reasonable price.

mujeebmuhsin:
I am seriously looking in to this investment. I understand that location is very crucial and I am therefore looking beyond my state for a good location. I will contact you once i get a good location at reasonable price.

Yes location is very important because you daily target sales should be a minimum of 33 cylinders per day and this is 'very achievable. some road side retailers even sell as high as 40cylinders per day

How much is the cost of refilling a cylinder??