Hello everyone, it’s your friend Emmanuel again coming through with insights and recent trends in the growing Nigerian LPG market. By now I am sure you are conversant with the LPG market already if you haven’t please read through this link https://www.nairaland.com/3412991/wait-minute-there-more-know

From our experience in building LPG businesses over the last two years, you will agree with me that there has been an upsurge of LPG businesses all around town especially in Lagos, currently there are 63 skid plants in Lagos, 21 in Ogun State, 19 in Ibadan, 16 in Port Harcourt. This amount of mini plants is as a result of the closeness of these states to the distribution centres, Lagos alone currently has 6 depots namely Navgas, Nipco, PPMC, Total, and Forte Oil also KIAKIAGAS is putting final touches to kick-starting her own. Port Harcourt has 2 now, Calabar one and Delta 3, also benin 1, so it makes the distribution of LPG in smaller quantities a little easier because of the nearness of these states to the depots.

We have had lots of enquiries and requests from entrepreneurs who are looking at setting up in the Northern Part of Nigeria but will want to test the waters with the mini plants (because of the initial start-up costs) but in all honestly it is not advisable to kick-start a mini LPG business in the northern part of the country for now because of lack of bulk distribution centres. The cost of logistics from Lagos, Delta, Port Harcourt to the North is relatively between 500k-700k for a 20tons bridger truck and as you know LPG logistics is determined by the distance not quantity, so it will take the same 500-700k to lift a 2.5, 5, 10, 15tons LPG from the coastal areas to the North which doesn’t make economic and business sense.

Where there are problems most times opportunities also abounds; there is a gap for Bulk LPG distribution in the Northern Part of Nigeria. This space has to be filled to open up and deepen the market in that region as it will in turn further drive utilization in the region especially in the rural and off-grid markets.
Follow the thread carefully as we discuss this challenge together and proffer collective practical solutions.

I am very interested in this discussion especially as it concerns the northern part of Nigeria as LPG business is really taking a new dimension in Kano with the likes of AA Rani, AFDIN, ULTIMATE GAS running the show...with this thread new investigators can be encouraged to invest in the business

saintkash:
I am very interested in this discussion especially as it concerns the northern part of Nigeria as LPG business is really taking a new dimension in Kano with the likes of AA Rani, AFDIN, ULTIMATE GAS running the show...with this thread new investigators can be encouraged to invest in the business

Nice to know that you have a keen interest in this emerging sector, please feel free to share your thoughts and opinions as this is a knowledge sharing platform for investors, entrepreneurs and regulators, meanwhile my name is emmnanuel from kiakiagas.com, you can write us on gaspreneur@kiakiagas.com or reach out on whatsapp: +2348085269328

Having seen the trend and the numbers from the 2006 census on distribution of household using gas form the 2006 census to be 49000 for Kano. This help me assume that if a household uses 12.5kg cylinder. This means 612500kg worth of gas is needed to serve this homes. 612500kg gives us 612.5tons of gas to serve Kano. Which means we need:

Number of tons Capacity in ton
245 2.5
122.5 5
61 10
30 20

the table above shows the number of tons required to serve 49000 household bearing in mind that this numbers(household) are from the 2006 census. Using Fagge local government in Kano as a case study with a population of 198828(2006 census). Leaving other local government for the taken and as the population has increased in the past 11 years more household have emerge leaving the numbers of tons needed to serve the Fagge local government area of Kano currently incorrect. This figure leaves us with the assumption that a 20mt is required per day, so having one 20mt will be unrealistic to service this population. Having a 20mt should be for storage while installing smaller skids in various locations as location serves and also meet the end users at their base, trucks are also a great form of storage. Lets say theres a 20mt storage sited in a place 2 Bridger trucks can also serve giving a room of 3 days to request for a refill and restock.