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.

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.

ncolumella:
The apparent convenience of crossfilling has negative consequences for safety and "traceability." Free from accountability, the filler may underfill or accept a defective cylinder for refilling, thereby denying the customer value for money or putting him (and possibly others) at risk.

ncolumella:
Most LP Gas cylinders in service worldwide are made of steel and fitted with brass valves. In Nigeria, the most commonly used cylinder carries a 12.5 kg fill and the tare weight is in the range 14–17 kg, that is, up to 30 kg when full. The weight is a problem for anyone who needs to carry it. The steel is subject to impact damage and to external corrosion and the consumer cannot see the contents. The weight problem has been addressed in other countries by the use of stainless steel and aluminum to replace mild steel but there is a cost penalty. Smaller capacity cylinders have been introduced in many countries, including Nigeria, but while they are lighter they require more frequent refilling.

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.

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?

ncolumella:



yes it Is more expensive to have Gas cylinders with guage or regulators with gauge. customers are not so concerned about that partly due to the cost implications but a refiller can take up the burden to fix regulators or cylinders with gauge for his customers so that once the customers see his gas is low, he would call his gas supplier for a refill or cylinder exchange. this type of investment is costly to do by the gas suppliers but it can build a good customer relationship between him and his customers and also promote timely delivery of gas to customers.

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:
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:
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.

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.