INVESTING IN THE COOKING GAS BUSINESS

Undoubtedly a vast investment potential exists in the domestic liquefied petroleum gas filling sub-sector of the Oil & Gas Industry in Nigeria. A large proportion of the middle and upper socioeconomic class of people depend on gas for cooking purposes. So are industries, government establishments, hotels, hospitals, restaurants, bakeries e.t.c

Nigeria’s domestic demand for Liquefied Petroleum Gas, LPG, increased from 600,000 metric tonnes, MT, to 840,000MT, indicating an increase of 40 per cent as at December, 2019.�

Today, Nigeria consumes over 1,000, 000MT per annumm and with less than one kilogram me per capita consumption, Nigeria ranks among the lowest liquefied petroleum gas consuming states in Africa despite its huge gas resources. It Is currently estimated that only 30% of our population uses LPG as a cooking energy while the remaining 40% uses Kerosene and 30% uses Fire wood.

LPG cylinders refilling plants would be needed to bring closer gas to the consumers and retailers. We manufacture/sell Mini LPG cylinder refilling plants here in Nigeria. This plants are mobile and easy to operate. This type of refilling plants requires very small piece of land/space and they can be easily relocated to a more profitable location. The plants also have over 30years operating life span.
� What is the cost of the LPG plant?

Cost of SARGAS LPG mini plants varies depending on the tank size and design. (Please visit our Nairaland links for more information)

https://www.nairaland.com/6398481/2.5tons-cooking-gas-plant#98726752

https://www.nairaland.com/6398493/5tons-lpg-cooking-gas-plant#98727138

Our most Affordable plants cost:

• 2.5tons mini plant: N7.5million
• 5tons mini plant: N14.5million
• 10plant: N25million

Our trendy plants/Facilities gives the best value. Providing a trendy LPG facility enhances a convenient one-stop shopping experience for your customers. It also increases store traffic and cross-sell opportunities adding to more profits for you! We provide and install best equipment sourced from reputable international companies. Our equipment are also SON approved and also meet international standards. With speed and accuracy, we build and deliver your facility at the expected handover date

How profitable is the business?

1ton of gas= 1000kg
So for example, a 5ton skid plant is 5000kg

Cost of gas as at today is N190,000/tons
Therefore, 5tons of gas is N950,000
Cost of Logistics within Lagos is N120,000

Total Landing cost of 5tons of gas is N950,000+N120,000= N1,070,000

Therefore landing cost per kg of gas to Lagos is N1,070,000/5000kg = N214/kg[b]

The LPG market is a deregulated market. which means you can sell at whatever price you desire. In this case, let’s assume a low profit margin of N50 per kg

[b]Sale Cost is: Landing cost/kg + Profit Margin

N214+N50 = N264 per kg

Which means you are selling your gas at N264/kg ( Sales Cost)

So therefore, 5000kg x 264kg = N1,320,000

Profit is: Sale Cost- Landing Cost

N1,320,000 - N1,070,000 = N250,000

So after selling 5tons of gas (5000kg) you made a profit of N250,000✅.

NOTE Profit margin of N50 used in the calculations above is worst case scenario. Actual profit margin in the market is between N100-300 depending on your location and business model.

Where do I setup my plant?

Being a bulky product, transportation of cooking gas can be costly and cumbersome. Many consumers would prefer buying gas in their locality therefore, locate your business in a place not too far from residential areas. Having determined the demand for cooking gas in the area, decide on the best location within the place for your business. Your ideal location will be an area with high traffic such as a busy road, street or street junction close to a market place, but always endeavor to avoid lands with high tension poles, churches, hospital and event centers as this could pose a huge problem during licensing by officials from Department of Petroleum Resources.

What Land size do I require?
The minimum land requirement to setup this LPG facility is 1 plot of Land. (for the 10tons, depending on location, 2plots).

What permits do I need?

Yes, you would be required to possess some permits before you are allowed to commence sales of gas and these permits includes
• Town Planning
• Police Report
• Fire Service Report
• Environmental Impact Assessment report
• Department of Petroleum Resources (DPR)

How do I refill my plant?

There are gas logistics companies that would come refill your plant no matter the location in Nigeria within 48hrs. LPG is deregulated and come with a very competitive pricing. The prices of LPG are also open therefore LPG logistics companies won't sell gas to you at an outrageous prices. You would only be charged for cost of transportation to your plant site.
it is advisable to constantly monitor the level of gas left in you plant so you can book for a delivery 2days ahead

Why is this a good investment option?

1. You own your business
2. Highly profitable
3. Easy to setup the business
4. Easy to maintain and manage
5. Very low operational cost
6. Location of plant can be changed/relocated at will
7. Safe
8. Small portion of land/space needed
9. Plants can be located closer to LPG consumers unlike stationary LPG

(Please visit our Nairaland links for more information)

https://www.nairaland.com/6398481/2.5tons-cooking-gas-plant#98726752

https://www.nairaland.com/6398493/5tons-lpg-cooking-gas-plant#98727138

Good business just like several others but CAPITAL

Fahmurex

Lekan111:
Good business just like several others but CAPITAL

Yes it is capital intensive but you can recover your investment within a year

Federal government also are giving our loans for investment in this business

Still available

SEnergy:
Federal government also are giving our loans for investment in this business

How can I access this please?

SEnergy:
Federal government also are giving our loans for investment in this business

Please how do i get access to the loan?

Kindly visit CBN website for more information. I would post a link shortly where you can download more information

Visit our website for more information

SEnergy:
Visit our website for more information

You didn't put the cost of registration with various government agencies.

boladale123:


You didn't put the cost of registration with various government agencies.

The depends on thr state which you are doing your registration. However, you would be spending averagely of 1.5millon or more

Good Morning

.

..

SEnergy:
Kindly visit CBN website for more information. I would post a link shortly where you can download more information

Update this sir.

.

Invest now

SARGAS ENERGY LIMITED
Call/Whatsapp: 08064452333, 08029716876�
Email: services@sargasenergy.com
http://www.sargasenergy.com

SEnergy:
SARGAS ENERGY LIMITED
Call/Whatsapp: 08064452333, 08029716876�
Email: services@sargasenergy.com
http://www.sargasenergy.com

I would love to chat with you about the business plan..

SEnergy:
SARGAS ENERGY LIMITED
Call/Whatsapp: 08064452333, 08029716876�
Email: services@sargasenergy.com
http://www.sargasenergy.com

can you help me set up a smaller scale LPG plant with 2.5 million?

This is the sargas feasibility report on the 10MT LPG Skid plant business.

SEnergy:
INVESTING IN THE COOKING GAS BUSINESS

Undoubtedly a vast investment potential exists in the domestic liquefied petroleum gas filling sub-sector of the Oil & Gas Industry in Nigeria. A large proportion of the middle and upper socioeconomic class of people depend on gas for cooking purposes. So are industries, government establishments, hotels, hospitals, restaurants, bakeries e.t.c

Nigeria’s domestic demand for Liquefied Petroleum Gas, LPG, increased from 600,000 metric tonnes, MT, to 840,000MT, indicating an increase of 40 per cent as at December, 2019.�

Today, Nigeria consumes over 1,000, 000MT per annumm and with less than one kilogram me per capita consumption, Nigeria ranks among the lowest liquefied petroleum gas consuming states in Africa despite its huge gas resources. It Is currently estimated that only 30% of our population uses LPG as a cooking energy while the remaining 40% uses Kerosene and 30% uses Fire wood.

LPG cylinders refilling plants would be needed to bring closer gas to the consumers and retailers. We manufacture/sell Mini LPG cylinder refilling plants here in Nigeria. This plants are mobile and easy to operate. This type of refilling plants requires very small piece of land/space and they can be easily relocated to a more profitable location. The plants also have over 30years operating life span.
� What is the cost of the LPG plant?

Cost of SARGAS LPG mini plants varies depending on the tank size and design. (Please visit our Nairaland links for more information)

https://www.nairaland.com/6398481/2.5tons-cooking-gas-plant#98726752

https://www.nairaland.com/6398493/5tons-lpg-cooking-gas-plant#98727138

Our most Affordable plants cost:

• 2.5tons mini plant: N7.5million
• 5tons mini plant: N14.5million
• 10plant: N25million

Our trendy plants/Facilities gives the best value. Providing a trendy LPG facility enhances a convenient one-stop shopping experience for your customers. It also increases store traffic and cross-sell opportunities adding to more profits for you! We provide and install best equipment sourced from reputable international companies. Our equipment are also SON approved and also meet international standards. With speed and accuracy, we build and deliver your facility at the expected handover date

How profitable is the business?

1ton of gas= 1000kg
So for example, a 5ton skid plant is 5000kg

Cost of gas as at today is N190,000/tons
Therefore, 5tons of gas is N950,000
Cost of Logistics within Lagos is N120,000

Total Landing cost of 5tons of gas is N950,000+N120,000= N1,070,000

Therefore landing cost per kg of gas to Lagos is N1,070,000/5000kg = N214/kg[b]

The LPG market is a deregulated market. which means you can sell at whatever price you desire. In this case, let’s assume a low profit margin of N50 per kg

[b]Sale Cost is: Landing cost/kg + Profit Margin

N214+N50 = N264 per kg

Which means you are selling your gas at N264/kg ( Sales Cost)

So therefore, 5000kg x 264kg = N1,320,000

Profit is: Sale Cost- Landing Cost

N1,320,000 - N1,070,000 = N250,000

So after selling 5tons of gas (5000kg) you made a profit of N250,000✅.

NOTE Profit margin of N50 used in the calculations above is worst case scenario. Actual profit margin in the market is between N100-300 depending on your location and business model.

Where do I setup my plant?

Being a bulky product, transportation of cooking gas can be costly and cumbersome. Many consumers would prefer buying gas in their locality therefore, locate your business in a place not too far from residential areas. Having determined the demand for cooking gas in the area, decide on the best location within the place for your business. Your ideal location will be an area with high traffic such as a busy road, street or street junction close to a market place, but always endeavor to avoid lands with high tension poles, churches, hospital and event centers as this could pose a huge problem during licensing by officials from Department of Petroleum Resources.

What Land size do I require?
The minimum land requirement to setup this LPG facility is 1 plot of Land. (for the 10tons, depending on location, 2plots).

What permits do I need?

Yes, you would be required to possess some permits before you are allowed to commence sales of gas and these permits includes
• Town Planning
• Police Report
• Fire Service Report
• Environmental Impact Assessment report
• Department of Petroleum Resources (DPR)

How do I refill my plant?

There are gas logistics companies that would come refill your plant no matter the location in Nigeria within 48hrs. LPG is deregulated and come with a very competitive pricing. The prices of LPG are also open therefore LPG logistics companies won't sell gas to you at an outrageous prices. You would only be charged for cost of transportation to your plant site.
it is advisable to constantly monitor the level of gas left in you plant so you can book for a delivery 2days ahead

Why is this a good investment option?

1. You own your business
2. Highly profitable
3. Easy to setup the business
4. Easy to maintain and manage
5. Very low operational cost
6. Location of plant can be changed/relocated at will
7. Safe
8. Small portion of land/space needed
9. Plants can be located closer to LPG consumers unlike stationary LPG

(Please visit our Nairaland links for more information)

https://www.nairaland.com/6398481/2.5tons-cooking-gas-plant#98726752

https://www.nairaland.com/6398493/5tons-lpg-cooking-gas-plant#98727138

Can you send me an email with present cost analysis for 5T and 10T?

Can I get the cost of setting up a 2.5 mt plant?

Lekan111:
Good business just like several others but CAPITAL

Plus the license from those relevant bodies no be beans

How much is the current price for 1 ton and how much for transportation as at today?