over the last couple of weeks, I have been getting kind words from entrepreneurs and investors on how our articles have been expanding their knowledge base about the African Gas Industry using Nigeria as a focus. They are really keen on action steps to take if they want to proceed with investment in the sector. This is what is forming the basis of my article today, to show you how Kiakiagas Limited helps you make sound business decisions and guide you through the hurdles of investing in the Nigerian LPG Industry.

As you walk across Nigeria today, you will observe a new trend of LPG plants popping up all around in petroleum filling stations, small land spaces, Major Plants, Bulk terminals are coming up, increased number of LPG trucks on the road and many write-ups are littered across the internet about the LPG industry, this is as a result of many individuals that are shifting from kerosene and to using cooking gas. The major challenge for the old and new consumers of gas is the fact that the gas plants are not close enough for them which creates a vacuum which entrepreneurs can take advantage of and create value in the sector by brings gas closer to the consumers.

The LPG industry in Nigeria has a value of NGN152 billion ($500Million) with less than 10% already being harnessed. Nigeria is at that point we were in the 1970's when the populace made a massive switch from firewood to kerosene stoves because it was the most convenient domestic fuel at that time.

Dear budding Entrepreneur, if there is anywhere to invest in Nigeria for now is the LPG Industry because it is not a seasonal product and it is a constant domestic requirement for homes and industries.

The KiaKiaGas Solution
Kiakiagas is an integrated energy solutions company with focus on Gases. We have competence in LPG/LNG/CNG retailing, distribution& logistics, Construction and Installation of Gas Facilities, Market research and Building profitable Gas businesses.
Our integrated support system guarantees that we get a profitable location to set up your business, get trading licenses for you to trade in the business, Construct and safely install your LPG plants for you, train you and your management staff on how to manage and run your plant, offer after sales support to make your business profitable and guarantee quick return on investment.

LPG INVESTMENT OPPORTUNITIES ACROSS THE VALUE CHAIN
There is different opportunities across the LPG Industry in Nigeria,
a) LPG Bulk Terminal Storage: this was extensively discussed in my last article, click this link in-case you missed it http://www.kiakiagas.com/blog/retail-lpg-pricing-nigeria to understand the opportunities that are in this segment of the industry.
b) LPG Retailing: this was extensively discussed in my last article, click this link in-case you missed it http://www.kiakiagas.com/blog/retail-lpg-pricing-nigeria to understand the opportunities that are in this segment of the Industry
c) LPG Distribution and Logistics: I have not discussed this, I will just touch it a little. In 2016, Nigeria consumed 500,000Mt (500,000,000kg) of gas. This translates to a monthly average consumption of 41,000Metric tonnes (i.e 41million Kg of gas). The standard used to measure trucking at the loading depot is 20MT truck (1.e20, 000kg), the detailed report is in our logistics business plan.
d) Production of cylinders and cookers: There is massive opportunity in this area, as there is no functional LPG cylinder manufacturing facility in Nigeria, you can request for the business plan
For this article we would be focusing on the retail end of the value chain

The amount of deaths from the use of dirty fuels in Nigeria according to the World Health Organization is 98,000 females deaths annually; putting that into perspective it is 2649 deaths per state in Nigeria and 127 deaths per LGA, is this not more than the issue of the fulani herdsmen crisis?

What are the different sizes of cooking gas cylinders? what size of cooking gas cylinder do you use at home?

Cooking gas cylinders come in different shapes, colors and sizes. The various sizes are 3kg, 5kg, 6kg, 12.5kg, 25kg and 50kg but other
sizes could also be manufactured based on special arrangements/ orders.

Did you know that there is an expiry date for cooking gas cylinders?

Each cylinder comes with three vertical stay plates (side stems) near its head. Besides carrying the weight information, one of the side
stem carries some alpha-numeric code which is the expiry date of that particular gas cylinder.

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

konoplyanka:
do you mean RPG?

It is LPG; Liquefied Petroleum Gas (cooking gas)

“We value our cows more than anything else”

Those were the alleged words some news outlets ascribed to Mr. Garus Gololo, the National Coordinator of Myetti Allah Cattle Breeders Association of Nigeria, and Special Assistant to Benue State Governor on Fulani matters, as part of his response to the counter attack by some Fulani herdsmen in Agatu Local Government Area of Benue State, in 2013, which left about 40 people dead at a funeral ceremony.

This carnage is one of many that has fraught different communities in the country since 2012 – the most recent being the attack at Akpagodogbo Otukpa, in Ogbadibo Local Government Area of Benue State, that left a police station destroyed and more than four people dead; and Ozalla, in Nkanu West Local Government Area of Enugu state, that left two men severely brutalized - leaving a growing number of corpses in its wake in the Fulani herdsmen constant transhumance migration to get the best grazing condition for their animals, and have saw them ranked as the fourth deadliest militant group in the world with a record killing of 1229 people in 2014, according to the 2015 Global Terrorism Index report published annually by the Institute for Economics and Peace (IEP), but have lost that spot to Al-Qa’ida in the 2016 report.

Politico-religious speculations have often been tied to the different theories advanced by some discussants when analyzing the reasons that gave rise to and fuelled this development; however at the core of the crises are desertification and deforestation, the primary root causes that must be addressed to forestall future occurrences.

Deforestation, on one hand, is considered as one of the contributing factors to global climate change. It leads to the permanent destruction of forests which in turn leads to the lack thereof of trees to absorb greenhouse gases and carbon emissions, and unavailability of oxygen and the release of water vapor into the atmosphere, resulting in the eventual dryness of the land.

Desertification, on the other hand, is the degradation of land whereby dry area of land loses its bodies of water as well as lush vegetation and wildlife as it becomes increasingly arid.

Much of Northern Nigeria, mostly Bauchi, Borno, Gombe, jigawa, Kano, Katsina, Kebbi, Sokoto, Yobe and Zamfara, are being affected by varying degrees of desertification estimated between 50% and 75%, and may worsen as the Sahara desert keeps advancing south wards at the rate of 6.0 percentages every year. Consequently, Nigeria loses about 350,000 hectares of land every year to desert encroachment. This has led to demographic displacements in villages across 11 states in the North. It is estimated that Nigeria loses about $5.1billion every year owing to rapid encroachment of drought and desert in most parts of the north.

This has greatly contributed to the continuous southward migration of the herdsmen with their cattle in search for lush vegetation for grazing.

In tackling these conflicts was the proffered solution by the Nigerian government to create an enforceable grazing area in the North Central as a short term solution to the problem of the conflict between the herdsmen and host communities which has been rejected by the herdsmen, under the Myetti Allah Cattle Breeders Association of Nigeria, through its National Legal Adviser, Bello Tukur, insisting on having grazing reserves and routes which brought about the proposed National Grazing Reserve (Establishment) Bill 2016 that would establish the Nigerian Grazing Reserve Commission, which shall have power to, among others, establish one cattle reserve in each state of the federation.

The bill has attracted criticisms in some quarters and has been rebuffed repeatedly by some factions who urged the National Assembly to dump the proposed bill saying it contradicts the Land Use Act which vested powers to allocate lands to the federal, state, and local governments, arguing that it will create more problems instead as cattle rearing is regarded a private business. With a lasting solution still lingering the clashes have continued unabated as there is no love lost between Fulani herdsmen and farmers whose crops, and (or) lives, get destroyed in the melee.

The incessant attack in Benue State and environs has caused the president of the Middle Belt Youth Council (MBYC) to advise victims to take up arms in their defense, further saying the way forward to end these attacks by the herdsmen is for communities to carry weapons to protect themselves. While it sounds like a safer route to follow, from the victims point of view, given the nature of the vicious cycle of violence, it may not produce the desired lasting solution.

It is in this regard we are positing, from where we stand as key players in the energy sector, the benefits of liquefied petroleum gas (LPG) as a lasting solution to this crisis.

Popular belief meets reality

The pastoral system practiced by the Fulani herders fall into three groups – exclusively pastoralists; transhumant pastoralists, and agro-pastoralists. Contrary to popular belief, moving with animals is not a luxury they take delight in. In fact, herding is a monumental task for the Fulani’s who are always trying to get the best grazing condition for their animals. The migrant Fulani in Nigeria move because they have no choice (Otchere et al., 1985). A survey (Iro, undated) reported that three-quarters of the mobile Fulani indicated that herding is not only toilsome, it is becoming more strenuous. Nevertheless, about ten percent of the Fulani, mostly those who are near dams and grazing reserves, say herding is becoming easier. Ninety-seven percent, including those who say herding is becoming less laborious, prefer raising animals within the precinct of the homestead.

The Math

According to the National Population Commission, the population of Nigeria as at 2016 is 182million people. The north comprises 54% of that figure which translates to 98,280,000 and the south has the other half, 46% which is 83,720,000, while the average population per households in the south is 5 persons, and the northern average is 10 persons per households. For the purpose of this piece, as we already stated our focus would be on the north.
We’ve established there are 9.8million homes in the north but how important is this figure in relation to LPG distribution in the region?
9,800,000 households when multiplied by 12.5Kg worth of gas monthly amounts to 122,500,000kg of gas monthly.
Annually, the market potential for 12 months translates to 122,500,000 multiplied by 12= 1,470,000,000 worth of gas which is 1.470million tonnes.

How can LPG solve the crisis?

Unlike the south where the consumption of LPG has increased tremendously as the preferred source of energy over the years - cooking gas (LPG) has witnessed massive growth from less than 70,000 tonnes consumed in 2007 to the current 500,000MT, a 614.285 percentage increase within 10 years, mostly in the south – same cannot be said for households in the north that still rely heavily on kerosene and firewood.

Sourcing for firewood is contributory to deforestation, and when converted to gas what we get is 12.5kg worth of gas is the equivalent of 91kg of firewood. If we apply the same math to firewood, what it implies is that Northern Nigeria can save 1470000000* 91kg = 133,770,000,000kg worth of wood, as well as its forest.

While there are no globally accepted standard for a forest, according to Debal Ray, a forester by choice on quora, “a forest is a land area of more than 0.5 ha, with a tree canopy cover of more than 10%, which is not primarily under agricultural or other specific non-forest land use. In the case of young forests or regions where tree growth is climatically suppressed, the trees should be capable of reaching a height of 5 m in situ, and of meeting the canopy cover requirement.”

Back to the numbers - Achieving 10% canopy cover (meaning if you stand in such a forest and look skyward, at least 10% of the sky should be covered by canopy of the trees) is important. We take that minimum 400 trees are able to fully stock (i.e. impart 40% canopy cover) one hectare of forest. This means 50 trees in a 0.5 hectare patch of forest, inter alia, will constitute a forest.

The Fulani Herdsmen love for their cows has been like a train without brakes, unstoppable, in their search to cater for the needs of the cows; grass hay, alfalfa hay, grains, corn as well as grass silage and water for their survival, and easy access to these in the north has become a challenge due to deforestation, and other factors, hence their constant migration southwards where.

While we agree that there are no one factor that has led to these development, we’ve also identified there are no one way to resolving these crisis. The conversion from firewood to LPG in the north – one of the ways to resolve these crisis – will not only help in the combat against land degradation, it will boost economic activities in the region as well as complement the Federal Government of Nigeria’s effort in fighting desert encroachment through its Great Green Wall Project, and ensure, in the long run, that the pastoralists won’t need to go far or look beyond their region to take care of their beloved cows.

Authored by Uwandu Emmanuel and Richard odilu From Kiakiagas.com you can reach us through Email: gaspreneur@kiakiagas.com or phone call 08187784000

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

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.

We, at KIAKIAGAS, are tested and trusted, won't you rather do business with us?

In case you were wondering, LPG is really just a fancy name for the usual cooking gas you know. It is an acronym that means Liquefied Petroleum Gas, so you need not worry about it being some big term you have no need for.

With the untrustworthiness of electricity, many people have resorted to finding an alternative for cooking. Imagine the horror of cooking in the night, completely famished and the power goes off. Therefore, to be the wiser, a lot of people have found other means and most settled for cooking gas because it is ultimately cheaper and also cooks food faster.


How LPG is Produced?
For many years when there was no use for LPG, it was counted as a wasted product while refining crude oil, thus, for long, it was called a by-product. The production of LPG does not entail manufacturing because it already exists in another product.
So, it could actually be referred to as a by-product but a useful one. LPG is processed via two distinct methods. It is either processed by cleaning natural gas of impurities such as various hydrocarbons which include the methane, ethane, ethene, propene, isobutene, butadiene, pentane and pentene, and fluid through a plant frequently called stripper plant, this process. Or it could be gotten by refining crude oil. When crude oil is pumped into a distillation tower to pass through distillation, different products are extracted at different stages of the refining.
The distillation power has been programmed to extract these products that include petrol, diesel, kerosene, LPG among others at certain temperature degree. The LPG gotten from crude oil is usually called ‘associated,’ which simply just translates to associated with oil and that not gotten from crude oil is called, ‘non-associated.’


How LPG is Distributed:

LPG value chains start's from the production, naturally. It moves down to refineries for further processing and then to terminals to bottling and storage where they are stored into the gas cylinders and then it moves to the retail sellers who sell through cylinders to consumers.

Production – Refining – Downstream Terminals – Bottling and Storage – Retail Distributors
Having known what LPG means, it wouldn’t be far-fetched to try to understand how LPG is stored and what a plant is all about. We all know what a plant is generally. And I know you know we don’t mean a plant as relates to agriculture but the plant in question here is in relation with factories or industries. A plant according to the dictionary simply means the land, buildings, machinery, apparatus, and fixtures employed in carrying on a trade or an industrial business.


What is an LPG plant and Types of LPG plant?
LPG must be stored in pressure vessels, therefore an LPG plant can be said to be the land, buildings, machinery, apparatus, and fixtures in carrying on the industrial process and trade of LPG. It contains everything put in place in order to ensure the smooth utilization of LPG by consumers. However, there are different kinds of LPG plants starting from the bulk storage of LPG to the end user;

A spherical LPG pressurized vessel used in refineries and terminals for bulk storage in large volumes with truck loading facility
Auto LPG Filling Stations for filling LPG in cars.
LPG bulk plants with vaporizers for use of LPG as burning fuel in industries,
LPG bulk plants for use of Liquid LPG in Aerosol and perfumes
LPG Filling plants for filling LPG cylinders.
We are going to stick to LPG filling plants for filling LPG cylinders considering that we are talking about cooking gas. Many people would see investing in LPG plant as a good move and this belief is not misplaced because as mentioned earlier, a lot of people are now treading the route of cooking gas. But there are certain points that must be taken into consideration in order to have a smooth running at it.

Technicalities on how to set up a LPG cylinder filling Plant:
Having an idea of the technicalities involved in setting up a LPG cylinder filling plant is crucial and has a lot to do with one’s success in the business. It is one thing to do a business and another to know how to succeed in a business. Therefore, it is not enough to know to invest in cooking gas but it is equally important to know how to work the business to succeed. After all, nobody sets out to fail in a business venture.

The first thing to take note of is the location. Having a good location is important so as to reach the consumers and also for convenience sake. If you open a business where the consumers cannot reach, you might just as well close it.
The second is to register your business. You need to get a license in Nigeria before you can get the permit to operate. Then of course, every other business venture is expected to register with the CAC (Corporate Affairs Commission) so as to be recognized as a legitimate business and even so as to protect your business.
Then, you need to construct your filling plant. Scout for a good and affordable – depending on what you can afford – company that specializes in construction of LPG filling plant so as to get the best for your money.
After that, you employ capable hands that have same vision as you do and are ready to work with you.
Get knowledge and apply wisdom. Get information on everything available on LPG and apply it.
And advertise. You need to get your business out there for people to know.

SPACE (location) to set up the plant: The location needs to be strategic because if you get your location wrong, it could affect the business. The location need to be a place that is close to customers. All things being equal, customers would prefer to patronize a seller close to them, so identify a target market in setting up your plant. Also, you are not supposed to be too close to residential buildings to prevent hazards. You are dealing with gases and they are not friendly to the health. The trick, therefore is to be close to customers who would largely be in residential areas but not too close to the houses so as to avoid health hazards. The DPR (Department of Petroleum Resources) requires a standard plant to be located on four plots of land. The minimum distance from a tank and a fixed source of ignition (residential buildings, filling shed, storage building etc.) should be 15metres.

LPG Plant Layout plan:



LPG DESIGN and construction:

In constructing an LPG plant, one needs to remember all the requirements of DPR concerning having a plant. After you get all the equipment and accessories mentioned below, it is always better to contract the construction to safe and trusted hands who would design the plant as recommended by the government of the land.
To fill 6kg, 12kg, 25kg and 35kg cylinders, the filling container will be equipped with three electronic filling machines. The LPG storage should consist of one (1) LPG tank with a geometrical capacity that is dependent on the size of the plant. And of course, the general construction would involve installing LPG fractionation system, compressors, refrigeration system, mini LPG storage, hot oil heating system, power generators and other supporting units.

The Different sizes of LPG cylinder refilling plant:

There are different sizes of LPG cylinder refilling plant and the difference is based on the size of their gas storage tank. There is the mini plant with 10,000 litres gas storage tank, the 20,000, 30,000, 40,000, 50,000 litres gas storage tank. The mini plant of 10,000 is recommended to be the minimum in order to serve more customers.
Major LPG components and accessories needed to run a plant: This section already falls under equipment.

LPG plant cost in Nigeria.
It is difficult to really estimate the cost of LPG plant because of various market and social factors that could come into play when planning to have one. Undoubtedly, it is a good business to invest in and expect to get profit because not only do most homes rely on cooking gas, it is used outside the home as well in restaurants, hospitals, hotels, government organizations and so on.
Therefore, the cost should not be a discouraging factor. Therefore, as expensive as it is expected to be, it is worth the money. Certain factors like the price of oil in the global market and price of other facilities could change but it is a risk worth taking. Some of the factors that are necessary for a LPG plant include; land definitely, license depending on location, gas supply, the actual construction, and facilities like gas tank (the metric ton of the tank varies by size and of course, cost), fire proof pump, filing systems, safety goggles, boots and overall, weighing scale and pressure gauge, return hose, fire extinguisher among others. All these would have to be calculated in the cost of the LPG plant.

LPG plant equipment
Every plant needs equipment. They are part of the heart of every plant. They include the testing pool, valve screwing, electronic carousel, mechanic carousel, electronic scale, mechanic scale, test unit, conveyor band, gas detector, level gauges, and fire extinguisher. It is important to note at this juncture that LPG plant equipment is not limited to those mentioned here. So apart from trying to make your job easier by providing you information, it is not out of place for you to do your homework when setting up your LPG plant.


Want to become a gasprenuer? Sign up here

Dear Buddy,

over the last couple of weeks, I have been getting kind words from entrepreneurs and investors on how our articles have been expanding their knowledge base about the African Gas Industry using Nigeria as a focus. They are really keen on action steps to take if they want to proceed with investment in the sector. This is what is forming the basis of my article today, to show you how Kiakiagas Limited helps you make sound business decisions and guide you through the hurdles of investing in the Nigerian LPG Industry.

As you walk across Nigeria today, you will observe a new trend of LPG plants popping up all around in petroleum filling stations, small land spaces, Major Plants, Bulk terminals are coming up, increased number of LPG trucks on the road and many write-ups are littered across the internet about the LPG industry, this is as a result of many individuals that are shifting from kerosene and to using cooking gas. The major challenge for the old and new consumers of gas is the fact that the gas plants are not close enough for them which creates a vacuum which entrepreneurs can take advantage of and create value in the sector by brings gas closer to the consumers.

The LPG industry in Nigeria has a value of NGN152 billion ($500Million) with less than 10% already being harnessed. Nigeria is at that point we were in the 1970's when the populace made a massive switch from firewood to kerosene stoves because it was the most convenient domestic fuel at that time.

Dear budding Entrepreneur, if there is anywhere to invest in Nigeria for now is the LPG Industry because it is not a seasonal product and it is a constant domestic requirement for homes and industries.

The KiaKiaGas Solution
Kiakiagas is an integrated energy solutions company with focus on Gases. We have competence in LPG/LNG/CNG retailing, distribution& logistics, Construction and Installation of Gas Facilities, Market research and Building profitable Gas businesses.
Our integrated support system guarantees that we get a profitable location to set up your business, get trading licenses for you to trade in the business, Construct and safely install your LPG plants for you, train you and your management staff on how to manage and run your plant, offer after sales support to make your business profitable and guarantee quick return on investment.

LPG INVESTMENT OPPORTUNITIES ACROSS THE VALUE CHAIN
There is different opportunities across the LPG Industry in Nigeria,
a) LPG Bulk Terminal Storage: this was extensively discussed in my last article, click this link in-case you missed it http://www.kiakiagas.com/blog/retail-lpg-pricing-nigeria to understand the opportunities that are in this segment of the industry.
b) LPG Retailing: this was extensively discussed in my last article, click this link in-case you missed it http://www.kiakiagas.com/blog/retail-lpg-pricing-nigeria to understand the opportunities that are in this segment of the Industry
c) LPG Distribution and Logistics: I have not discussed this, I will just touch it a little. In 2016, Nigeria consumed 500,000Mt (500,000,000kg) of gas. This translates to a monthly average consumption of 41,000Metric tonnes (i.e 41million Kg of gas). The standard used to measure trucking at the loading depot is 20MT truck (1.e20, 000kg), the detailed report is in our logistics business plan.
d) Production of cylinders and cookers: There is massive opportunity in this area, as there is no functional LPG cylinder manufacturing facility in Nigeria, you can request for the business plan
For this article we would be focusing on the retail end of the value chain

BUSINESS INVESTMENT ACTION STEPS
1. BUSINESS FEASIBILITY INTELLIGENCE REPORT
our business feasibility report is a must have if you must succeed and make a fortune in this business. The report is a quarterly updated working intelligence document that will be updated to you once you subscribe to help you keep in touch with current realities on ground and help you make decisions that would guide your business to profitability.

The Plan includes:
Business Overview
Marketing Plan
Production Plan
Organizational and Management Plan
Financial Plan
Risk Analysis and SWOT analysis
Quarterly business intelligent update

For those that do not have the money now to start up, the plan is a must have when seeking for a loan from any bank in Nigeria or attract investors.
2. LPG PLANT VARIATIONS
LPG Retail Plant Sizes that Kiakiagas in collaboration with our foreign technical partners can set-up for you

2.5tonnes mini plant:
5 tonnes mini plant:
10tonnes Mini plant:
20-100tons stationary plant
100-500 tons stationary plant

THE PPEs that comes with the Facility:
1. LPG tank
2. LPG fire proof Pumps
3. Filling Heads customized for the Nigerian Market
4. Weighing scales
5. Pressure gauge
6. Return Hose
7. Fire extinguishers
8. Safety Overalls
9. Safety boots
10. Safety gloves
11. Safety goggles
13. Safety caution signage’s
14. Free HSE training on how to manage the plant
15. Free haulage to anywhere in Nigeria

3. BUSINESS LOCATION[/b]
We have partnerships with major service stations and realtors across Nigeria which guarantees a space in a profitable location to set up your plant

[b]4. LPG OPERATING AND TRADING LICENSE
Our extensive network with DPR and other regulatory agencies enables us secure operating licenses for you to trade LPG in the quickest possible time.

6. PROFITABILITY ANALYSIS OF YOUR BUSINESS

We would do a quick analysis using the smallest possible LPG facility 2.5Metric tonnes or a 5,000 litres storage capacity.
The gas supply will be in lots of 5 tons using the small road tankers which will source the product directly from the Depot. With the right location and marketing an entrepreneur will conveniently sell 2.5 tonnes per week, which will amount to the entrepreneur doing 10 tonnes a month.

The pricing
The current price of gas at the depot is NGN4, 500,000 ($14,377) for 20 tons, divide by 8 to get the price of a 2.5MT which is NGN562,500 ($1797).

Cost of 2.5tons from the depot NGN562,500 (USD1797)
Cost of Logistics (Lagos) NGN80,000 (USD255.59)
Nupeng Dues at the Depot NGN14,500 (USD46.33)
Total cost to land a 2.5 tons load of gas NGN657,000 (USD2,099.07)
Landing Cost per Kg (divide total cost by 2500kg) NGN262 (USD80.84)
Landing cost of a standard 12.5kg cylinder (multiply cost landing cost by 12.5) NGN3285 (USD10.50)

The prevailing price for gas in lagos is NGN4500 ($14.38) per 12.5kg cylinder size currently that is;To get the Margin per Kg is calculated to be:
NGN4500/12.5kg = NGN360 ($1.15) per KG
the Margin is NGN360 ($1.15) (selling price) – NGN262.8 ($0.84) (landing cost) = NGN97.2 ($0.31) per KG
Profit Margin Per 12.5kg = NGN97.2 X 12.5 = NGN1215 ($3.88)
With a conservative projection of 2500kg (200 cylinders) sales per week
2.5 tonnes storage fills 200 12.5kg cylinders.
200 x 4weeks= 800 cylinders per month
at a standard filling rate of N4500 ($14.38) per cylinder gives NGN3, 600,000 ($11,501.76) per month. (Lagos Price).
At the current landing cost of gas from the depot (lagos location) of NGN3285 ($10.50) per cylinder gives a gross margin of NGN2, 628,000 ($8,396.29) per month.
(Prices fluctuate at the depot, which also determines the sales cost to the consumers)
This venture can generate NGN972, 000 ($3,105.48) 000 as gross income a month.

NOTE: This is a conservative projection; actually 2.5tons of gas can be sold daily if the location prospecting and marketing is done right

7. WHY THIS IS YOUR BEST INVESTMENT OPTION
• You own your business
• Your plant is branded in your company Name
• Very low operational cost
• Kiakiagas maintains the plant for you
• Safe and Secure

8. OUR INTEGRATED AFTER SALES SUPPORT
• Management tools (OMS, Gas Sales stock Tracker) to successfully track and run business to make it a profitable
• Full in-house sales support
• Routine Maintenance on the plants
• Steady Supply of Gas to the plant at best competitive prices
• Quarterly HSE and Management Training
• All year round business support and free consultancy

9. OUR PROMISE
• 21 days delivery time
• No additional charges (it’s a turnkey project)
• Dedicated customer service
• Cheerful training staff
• Assurance and quality check.

For more information call/whatsapp our business development team: +2348085269328

OR send us a mail at: gaspreneur@kiakiagas.com
Read more on http://www.kiakiagas.com/blog/nigerian-retail-lpg-value-chain-investment-action-steps

Best regards

Egbetayo:
Please I will appreciate if you can assist in securing LPG license and training. 08026609210

We would call you sir, you can write us gaspreneur@kiakiagas.com or whatsapp +2348085269328

ol2012:


Sent you a pm. Kindly respond so I can provide the details requested for.

Good evening and happy Sunday

Good day, you can write us an email gaspreneur@kiakiagas.com or call/whatsapp +2348085269328

ol2012:
Very interesting read. Thanks so much for the write up. Please I'd like to find out if you offer training on operating an LPG facility(skid plant to be precise) If yes I'll like to know how much it costs and the duration. Kindly provide the location of your facility too.

Thanks

Kindly drop your phone number and email, we would call and write you.

Best regards

Hi guys it’s your Emerging Markets Clean Energy Business expert and today we would be discussing the retail pricing of LPG in Nigeria. This is a knowledge sharing interactive piece, I will appreciate your comments and inputs and I will respond immediately. Let’s get the ball rolling

The Nigerian annual consumption of LPG has grown from 130,000 Metric tonnes in 2011, 145,000Metric tonnes in 2012, 250,000 Metric tonnes in 2013, to 500,000Metric Tonnes in 2016 with a potential to hit 2Million Metric Tonnes in 2018.

Despite the steady upward movement of the consumption Level, Nigeria is still ranked lowest in sub-Saharan Africa in per capita usage of LPG, consuming 1.8kg compared with Ghana at 3.0kg; South Africa consumes 5.5kg; while Morocco consumes 44kg per capita. Nigeria’s consumption is a meagre 1.8kg per capita, compared to the West African regional average of 3.5kg.

About 30 million households and more than 100 million Nigerians are said to depend on firewood as a source of energy for cooking with its attendant collateral damage to human health and the environment.

The Major Barrier to the proliferation of LPG in Nigeria at the moment is Infrastructure for storage and distribution to the end users and majorly price instability of the product. However this piece will be focused on the volatility of the pricing of retail LPG.

UNDERSTANDING RETAIL LPG PRICING IN NIGERIA


There are many factors that go into determining the retail price of LPG in Nigeria. These all fluctuate over time. Kiakiagas.com constantly review all of these factors to make sure that we put out competitive prices.

NLNG is the major supplier of LPG to the Nigerian market. The country currently has 21 Off-takers who are designated buyers of the product from NLNG saddled with the responsibility of distributing the product to the local market as NLNG is not interested local distribution of LPG

The following should help explain all of these factors…

World LPG Bench-Mark Pricing
Exchange Rates
·Shortage of Discharge Terminals, Storage and Distribution Infrastructure
LPG Transportation and Logistics Costs
Seasonality of product
Now lets look at it one after the other

World LPG Benchmark Pricing
Nigerian LPG prices reflect the fact that LPG is an internationally traded commodity and influenced by international prices. The international benchmark for the cost of Nigerian LPG is the Nigerian Liquefied Natural Gas Contract Price (NLNG), also commonly called the NLNG CP.

The NLNG CP changes on a monthly basis, forcing price reviews at least once to three times per month. All internationally traded commodities are subject to price fluctuations. Agricultural and natural resource products are similar to LPG, in that they are subject to the prevailing price in international commodity markets.

2. Exchange Rates

The NLNG CP is expressed in US dollars per tonne.

As the international price for LPG is in US dollars, the Nigerian Naira exchange rate also affects the Nigerian price of LPG. Exchange rates change numerous times per day, making the setting and publishing of prices even more challenging.

NLNG hinges the price on the international market fundamentals; it means that although the product is produced locally, it has to be bought with the US dollar which has increased the price of gas because of the rising cost of the dollar.

When the exchange -rate of the Naira to Dollar was $1= NGN190 in early 2016 the price of a 20tonne Truck of LPG was sold at NGN3.5million ($18,421) and the retail price of a 12.5kg cylinder was between NGN2700-3500 ($14-18). The official exchange -rate of the Naira to Dollar in 2017 is $1= NGN305, the consignment from NLNG in February 2017 was sold for NGN5.1 million per 20 metric tonnes ($16,721), and the current retail price of a 12.5kg cylinder is now between NGN4500-5500 ($14-18).

Looking at the two prices, you will realise that the price of the product from NLNG did not really change but the retail price of LPG in Nigeria increased because of the Exchange rate.

3. Shortage of Discharge Terminals, Storage and Distribution Infrastructure

The biggest challenge facing the LPG sector is not supply as the Nigeria LNG has stabilised supply; the chronic challenge is in the area of logistics.

The Nigerian National Petroleum Corporation (NNPC) has three jetties in Lagos that constitute the Apapa Jetty – Petroleum Wharf (PWA); BOP and NOJ, all used by vessels to discharge petroleum products.

But only NOJ has facilities to discharge LPG and thus dedicated for the discharge of LPG, base oil and other similar products from vessels. However, NOJ is also used to discharge petrol and other petroleum products from vessels.

So, whenever NLNG brings LPG vessel to Lagos and another vessel is discharging petrol at NOJ, the LPG vessel will either wait and incur huge demurrage or go to NAVGAS terminal, a private jetty and the only alternative jetty for LPG vessels to discharge in Lagos.

Even when NOJ is vacant and NLNG brings in LPG vessel, once a petrol vessel is around the corner, it will be given priority to berth before the LPG vessel “to avoid creating fuel scarcity” as the PPMC and petrol marketers usually claim.

Though the country has not experienced acute scarcity of cooking gas since NLNG intervened in 2007, persistent hike in price occurs whenever NLNG vessel experiences delays in loading at the Bonny Island plant or when the vessel is diverted to a private facility in Apapa as a result of lack of berthing space in PPMC jetty.

Sometime around December 2016 - January 2016, the prices of LPG soared to NGN6000-7500 ($19-24) because the NLNG dedicated LPG vessel was unable to discharge LPG at the Apapa port from December 29, 2016 to the second week of January as a result of jetty unavailability at that time.


4. LPG Transportation and Logistics Costs

All the three Inland Bulk Terminals are currently located in Lagos, the commercial nerve centre of Nigeria. There are 35 other states plus the Federal capital territory that all gets their domestic supply from Lagos with Bridger and Bobtail Trucks.

The states are different distances from the delivery depots which, in turn, differentiate the prices from their counterparts in the different parts of the country.

For example, if your LPG 20tonnes Plant is located in Lagos the cost of a Bridger truck to deliver LPG from the terminal at Apapa (in lagos) to your plant is NGN200,000 ($655) or NGN95,000 ($311) for a bob-tail truck if you operate a mini skid plant of 2.5-10tonnes. Also, the cost to deliver that same quantity of LPG from Lagos to Port-Harcourt is 450,000 ($1475) for a Bridger truck and NGN350, 000 ($1147) for a bobtail truck. These logistics costs can vary across the different geographical locations of Nigeria, LPG pricing also varies by location and distance from the source.

The main cost variables of retail LPG pricing are:

1. The cost of the product from NLNG

2. Terminal fees of NGN28,000 ($91) and NGN14,000 ($45) for per load of LPG in a Bridger and bobtail truck respectively

3. The logistics costs from the bulk depots to the retail bottling plants.

4. The logistics costs from the retail bottling plants to retailer outlet

5. Seasonality

The seasons also affect LPG costs, as the worldwide demand is generally higher during the northern hemisphere winter. In general, higher demand results in tightening of supplies and an increase in prices.

Since NLNG pricing is hinged on the price in the international market, when there is winter in Europe and the price of gas goes up, Nigerians are also made to pay the high price even though there is no winter in Nigeria.

What is the Average retail price of LPG around the world?

The average price of LPG around the world is 0.58 U.S. Dollar per litre. However, there is substantial difference in these prices among countries. All countries have access to the same natural gas prices of international markets but then decide to impose different taxes. As a result, the retail price of LPG is different


The average Price of LPG in Africa

The price of LPG per litre in these countries are stated below

1. South-Africa- $0.96

2. Kenya- $1.69

3. Togo- $0.51

4. Ghana- $0.79

5. Nigeria- $0.65

The average price of LPG using prices of the four African countries used in this research listed above is 0.92 U.S. Dollar per litre. The average retail price of LPG in Nigeria is slightly higher than the Global average price and also lower than the African Nigerian Average price.

As entrepreneurs’ we see challenges as market opportunities; the price of LPG in Nigeria can be stable if the operations across the distribution across the value can be fully optimised to reduce costs which will in turn reduce LPG price.

The following are investment opportunities in the Nigerian LPG Industry

1. Build Dedicated LPG Berthing Jetties: There are only two jetties in Nigeria with LPG discharge facilities which reduce the turn-around time in discharging of product which slows down the entire value chain. Nigeria needs at least three jetties to consolidate the two we have on ground at the moment to achieve easy discharge of products especially in the coastal areas like Port Harcourt, Warri and Calabar.

2. Expand Bulk Storage Terminals: The current capacity of the coastal bulk terminals in the country is 27500MTonnes. Only 4 storage facilities with a combined capacity of 17,500Mtonnes are currently active in the country. The average monthly consumption of LPG in Nigeria is 41,000Mtonnes. This buttresses the point i stated earlier that when there are delays in loading of the product from bonny and discharge at the Apapa terminal in Lagos, there will be price hike because the current storage infrastructure is not big enough to keep stock for more than a week. As soon as the product is discharged the price will crash down.

3. Build More LPG Plants: To saturate the LPG Market in Nigeria there needs to be at least 2000 bottling plants, the current reality is about 350 bottling plants, so the retailers still travel long distances to get the gas from the plants which will incur logistics costs which in turn increases the retail price.



While Kiakiagas is a leading integrated marketer of LPG in Nigeria, we are also dependent on the primary LPG supplier (NLNG) and current storage infrastructure in place for storage and distribution of the product and are subject to changes in the international price, taxes, transport and other related costs and considerations.

The variation in limited discharging facilities of LPG, insufficient bulk storage terminals, inadequate numbers of LPG plants as well as non-availability of Bridger and Bobtail trucks for distribution is an impediment to the growth of the Nigerian LPG industry

The challenges highlighted are market opportunities for investors and entrepreneurs who are considering investment in the growing LPG industry.

For more enquiries about the investing in the Nigerian LPG Industry, you can write us Gaspreneur@kiakiagas.com or call or whatsapp +2348085269328 and we would help you build a profitable LPG Business.

I am waiting for your responses and comments

Best regards.

i will like to do the business but i don't have capital.plz help[/quote]

Please call our business development team on : 09060325773 or reach them on whatsapp

Or send a mail to gaspreneur@kiakiagas com

trendwill:

how can one start this business. Required capital and tools

Please call our business development team on : 09060325773

laudate:
Hello, what is the current price of your new 5MT LPG Gas Skid? Thanks.

Please call our business development team on : 09060325773 or reach them on whatsapp

Or send a mail to gaspreneur@kiakiagas com

bless

Annual Consumption of cooking Gas stands at 300,000 MTPA (300million KG)

Using the standard LPG cylinder benchmark (12.5kg cylinders) = 24million 12.5kg cylinders

Lagos accounts for 35% of the total LPG consumed in Nigeria = 105,000MTPA (105million KG) (8.4million 12.5kg cylinders)

The other states share the remaining 65% = 195,000 MTPA (195million KG)

There is a huge market potential for retailing cooking gas

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

My name is Emmanuel and today i will like to share with you some facts to consider when starting a cooking gas retail business. If you have been looking to start a business of your own, a cooking gas retail business might just be the best option for you. It involves buying huge quantities of cooking gas, storing it in tanks, and selling it to individuals for domestic purposes such as cooking. But before starting a cooking gas retail business, it is important to learn about the business. Some of the things to know about the business are:

1 How is cooking gas measured?
2 Where do you buy cooking gas from?
3 How do you handle gas cylinders?
4 How do you refill a customer’s gas cylinder?
5 What are the various sizes of cooking gas cylinders?

1) How is cooking gas measured: Cooking gas can be measured in litres, kilogrammes and tonnes. 1 kilogramme is equivalent to 1.75 litres and 1 metric tonne is equivalent to 1000 kilogrammes. So 1 metric tone is equivalent to 1,750 litres.

2) Where do you buy cooking gas from: If you plan to go into the cooking gas retail business, it is necessary to know the best source or sources to get your gas from. NAVGAS is currently the biggest offtaker (gas seller) in Nigeria, another very reliable offtaker is NIPCO and they are both located at Apapa in Lagos state.

3) How do you handle gas cylinders:
– Always place gas cylinders in a vertical position, unless stated otherwise by the manufacturer.
– Restrain cylinders securely to prevent them from falling over.
– Always ensure that the cylinder valves are tightly closed.
– Ensure that the valve is protected by a valve cap to prevent any damage if the cylinder is dropped.
– When loading or unloading the cylinders, never drag, drop or roll the cylinder as these can cause major physical damages to the cylinders.
– Always ensure that the cylinders are kept in a well ventilated warehouse with regards to the manufacturer's ambient temperature standard.
– Always ensure that the cylinders are placed on wooden pallet and not on a bare floor.
– Prevent direct physical contact among cylinders in storage.

4) How do you refill a customer's gas cylinder: There are two basic ways gas cylinders can be filled depending on the nature of the filling system i.e automatic or pneumatic filling system. For automatic dispensing system, the exact amount or quantity of (kg or litres) is pressed on the dispenser while the refilling nozzle is already inserted in the cylinder. In this way, the system automatically stops dispensing once the pre-determined amount of gas is reached. For the pneumatic dispensing system, the cylinder is place on a digital scale and the scale is adjusted to its zero limit. Then, the nozzle of the filling system is fitted to the value of the cylinder and the system is stopped as soon as the pre-determined amount of gas is reached.

5) What are the various sizes of cooking gas cylinders: Cooking gas cylinders come in different shapes, colors and sizes. The various sizes are 3kg, 5kg, 6kg, 12.5kg, 25kg and 50kg. Also some intermediate sizes could be manufactured based on specific orders.

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

WELCOME TO THE GAS SIDE OF LIFE!

My name is Emmanuel and today i will like to share with you some facts to consider when starting a cooking gas retail business. If you have been looking to start a business of your own, a cooking gas retail business might just be the best option for you. It involves buying huge quantities of cooking gas, storing it in tanks, and selling it to individuals for domestic purposes such as cooking. But before starting a cooking gas retail business, it is important to learn about the business. Some of the things to know about the business are:

1 How is cooking gas measured?
2 Where do you buy cooking gas from?
3 How do you handle gas cylinders?
4 How do you refill a customer’s gas cylinder?
5 What are the various sizes of cooking gas cylinders?

1) How is cooking gas measured: Cooking gas can be measured in litres, kilogrammes and tonnes. 1 kilogramme is equivalent to 1.75 litres and 1 metric tonne is equivalent to 1000 kilogrammes. So 1 metric tone is equivalent to 1,750 litres.

2) Where do you buy cooking gas from: If you plan to go into the cooking gas retail business, it is necessary to know the best source or sources to get your gas from. NAVGAS is currently the biggest offtaker (gas seller) in Nigeria, another very reliable offtaker is NIPCO and they are both located at Apapa in Lagos state.

3) How do you handle gas cylinders:
– Always place gas cylinders in a vertical position, unless stated otherwise by the manufacturer.
– Restrain cylinders securely to prevent them from falling over.
– Always ensure that the cylinder valves are tightly closed.
– Ensure that the valve is protected by a valve cap to prevent any damage if the cylinder is dropped.
– When loading or unloading the cylinders, never drag, drop or roll the cylinder as these can cause major physical damages to the cylinders.
– Always ensure that the cylinders are kept in a well ventilated warehouse with regards to the manufacturer's ambient temperature standard.
– Always ensure that the cylinders are placed on wooden pallet and not on a bare floor.
– Prevent direct physical contact among cylinders in storage.

4) How do you refill a customer's gas cylinder: There are two basic ways gas cylinders can be filled depending on the nature of the filling system i.e automatic or pneumatic filling system. For automatic dispensing system, the exact amount or quantity of (kg or litres) is pressed on the dispenser while the refilling nozzle is already inserted in the cylinder. In this way, the system automatically stops dispensing once the pre-determined amount of gas is reached. For the pneumatic dispensing system, the cylinder is place on a digital scale and the scale is adjusted to its zero limit. Then, the nozzle of the filling system is fitted to the value of the cylinder and the system is stopped as soon as the pre-determined amount of gas is reached.

5) What are the various sizes of cooking gas cylinders: Cooking gas cylinders come in different shapes, colors and sizes. The various sizes are 3kg, 5kg, 6kg, 12.5kg, 25kg and 50kg. Also some intermediate sizes could be manufactured based on specific orders.

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

WELCOME TO THE GAS SIDE OF LIFE!

My name is Emmanuel and today i will like to share with you some facts to consider when starting a cooking gas retail business. If you have been looking to start a business of your own, a cooking gas retail business might just be the best option for you. It involves buying huge quantities of cooking gas, storing it in tanks, and selling it to individuals for domestic purposes such as cooking. But before starting a cooking gas retail business, it is important to learn about the business. Some of the things to know about the business are:

1 How is cooking gas measured?
2 Where do you buy cooking gas from?
3 How do you handle gas cylinders?
4 How do you refill a customer’s gas cylinder?
5 What are the various sizes of cooking gas cylinders?

1) How is cooking gas measured: Cooking gas can be measured in litres, kilogrammes and tonnes. 1 kilogramme is equivalent to 1.75 litres and 1 metric tonne is equivalent to 1000 kilogrammes. So 1 metric tone is equivalent to 1,750 litres.

2) Where do you buy cooking gas from: If you plan to go into the cooking gas retail business, it is necessary to know the best source or sources to get your gas from. NAVGAS is currently the biggest offtaker (gas seller) in Nigeria, another very reliable offtaker is NIPCO and they are both located at Apapa in Lagos state.

3) How do you handle gas cylinders:
– Always place gas cylinders in a vertical position, unless stated otherwise by the manufacturer.
– Restrain cylinders securely to prevent them from falling over.
– Always ensure that the cylinder valves are tightly closed.
– Ensure that the valve is protected by a valve cap to prevent any damage if the cylinder is dropped.
– When loading or unloading the cylinders, never drag, drop or roll the cylinder as these can cause major physical damages to the cylinders.
– Always ensure that the cylinders are kept in a well ventilated warehouse with regards to the manufacturer's ambient temperature standard.
– Always ensure that the cylinders are placed on wooden pallet and not on a bare floor.
– Prevent direct physical contact among cylinders in storage.

4) How do you refill a customer's gas cylinder: There are two basic ways gas cylinders can be filled depending on the nature of the filling system i.e automatic or pneumatic filling system. For automatic dispensing system, the exact amount or quantity of (kg or litres) is pressed on the dispenser while the refilling nozzle is already inserted in the cylinder. In this way, the system automatically stops dispensing once the pre-determined amount of gas is reached. For the pneumatic dispensing system, the cylinder is place on a digital scale and the scale is adjusted to its zero limit. Then, the nozzle of the filling system is fitted to the value of the cylinder and the system is stopped as soon as the pre-determined amount of gas is reached.

5) What are the various sizes of cooking gas cylinders: Cooking gas cylinders come in different shapes, colors and sizes. The various sizes are 3kg, 5kg, 6kg, 12.5kg, 25kg and 50kg. Also some intermediate sizes could be manufactured based on specific orders.

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

WELCOME TO THE GAS SIDE OF LIFE!

WhoBeThisMan:
I have a question, of you have an LPS plant, it there a measure put in place to allow you monitor your staff sales?

Yes sir, we do have a monitoring system,

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

ol2012:
Good afternoon OP, please I'd like to know how long it takes to process DPR add on permit for LPG skid to be sited in an existing filing station. Kindly also assist with the current cost of same.

Thank you.

From Experience the documentation, usually take less than 5 working days but to get the DPR guys to come down to have a look at the site and to complete all other requirements needs another 5 days, to file in and wait for the certificate will take another 5 days, give or take it should be concluded within a month.

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

What You Need to Start Cooking Gas Business

Get a Location: It is important to do your findings when you want to set up this business, you should look out for a location with a strong retail potential. Almost anywhere in lagos is good for this business but some areas are more viable than some. One interesting fact about the current trend in this business is that the consumption rate of cooking gas in low-income areas is growing higher than the consumption rate in the Urban areas.

The reason for this change in trend among consumers is the rising cost and scarcity of kerosene; the low-income earners are moving from Kerosine to small cylinders (3kg,5kg,6kg) because of the price and availability of the product. Their domestic energy needs are more because their income cannot accommodate eating in restaurants and big generators to generate power to keep their foods fresh in the freezer or boil water with heaters, so they use the gas always to cater for their domestic energy needs as against the consumers in the urban areas who spend most of their time at the office and rely on eatries and Restaurants for their food and electricity for their other energy needs.

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

Royal155:
What is this one even saying?
Is this what you said you'll teach us, how to start the business?

Haba My friend, No vex i wanted to bring it to you bits by bits, unfortunately i got caught up with field work, couldnt post immediately.

Anyway, as you walk across Nigeria today, you will observe a new trend of LPG plants popping up all around especially in petroleum filling stations and small land spaces and many write-ups are littered across the internet about the LPG industry, this is as a result of many individuals that are shifting from kerosene and other fossil fuels to using cooking gas. The major challenge for the old and new consumers of gas is the fact that the gas plants are not close enough for them which creates a vacuum which entrepreneurs can take advantage of and create value in the sector by bring gas closer to the consumers.

So let us look at how you can start up the cooking gas business.

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

Questions usually arise with respect to the safety of an LPG skid plant in a given location. People are often discouraged to own and operate LPG skid plants mostly due to the explosive nature of the gas which might be perceived as a threat to lives and properties. However, there are cogent and verifiable reasons why these concerns should not discourage you from owning and operating an LPG skid plant in any location of your choice.

1. Before an LPG skid plant can be sited and installed in a given location, Department of Petroleum Resources (DPR) must carry out a proper Environmental Impact Assessment (EIA) in accordance with the international best standard, followed by calibration test, pressure test and facility integrity test to ascertain the safety compliance limit of the LPG infrastructure. A DPR certificate is issued once all the necessary standards are met.

2. An LPG skid plant comes with a Pressure Relief Valve (PRV) which serves as a vent for built-up pressure. Under a high external temperature (due to a nearby fire incident for instance), the Pressure Relief Valve (PRV) releases the excess pressure fast to prevent the rupturing of the vessel (tank or cylinder).

3. An LPG skid plant has a wall thickness of about 15cm. This serves as a fire and pressure resistance, preventing the rupturing of the vessel (tank and cylinder) under a high and prolonged fire incidence.

4. In accordance with international best standard, an LPG skid plant is filled up to about 85% capacity in order to provide enough space for the thermal expansion of the contained gas when the surrounding temperature increases.

In the light of the aforementioned facts, investment in the growing LPG market is the most prudent decision anyone can make, especially as the LPG market in Nigeria is worth over #37 billion annually with about 50% return on investment.

For more information about the LPG business in Nigeria call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

Difference between propane and butane.

Cooking gas is called Liquefied Petroleum Gas; it has two major components namely Propane and Butane.

Propane and butane are both combustible fuels derived from petroleum. They are commonly used as cooking fuels, particularly in portable gas cylinders, while there are many similarities between these gases, there are also subtle differences. Propane is mostly used in Colder regions and butane is used in Hotter Regions of the world. As a matter of fact in Nigeria the standard composition of LPG is 100% butane, and the propane level should not be more than 15% if it is present because of the temperature of our climate

Let us quickly look at the differences and Similarities of Propane and Butane.

Heat Output

Contrary to the notion that propane burns hotter than butane, the heat output is identical. Both fuels deliver the same BTUs (British thermal units), so neither flame is hotter, according to The Adventure Network. One will not boil water or cook food faster than the other.

Cooking Capacity

Butane has about 12 percent more energy than propane by volume. This means that you can cook longer with a bottle of butane than with a propane bottle or cartridge of the same size.

Connectors

Butane stoves are typically more convenient and easier to connect to a fuel container than a propane stove. This is because butane containers features clip-style connectors, while propane containers have screw-on connectors. This distinction only applies to larger stoves--smaller stoves use cartridges that have the same types of connectors.

Boiling Point

Cooking fuels must be in a gaseous state before they can be used with a stove. Standard butane boils at 31 degrees F, while propane boils at -43 degrees F. This means that if you are cooking in freezing weather, butane will not work well because it will remain in a liquid state. You would need to warm the container before using it in cold weather.

Look at what a standard Nigerian DPR approved cooking gas report that should be retailed looks like in the image below

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

Annual Consumption of cooking Gas stands at 300,000 MTPA (300million KG)

Using the standard LPG cylinder benchmark (12.5kg cylinders) = 24million 12.5kg cylinders

Lagos accounts for 35% of the total LPG consumed in Nigeria = 105,000MTPA (105million KG) (8.4million 12.5kg cylinders)

The other states share the remaining 65% = 195,000 MTPA (195million KG)

There is a huge market potential for retailing cooking gas

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

Most of the energy used for domestic cooking in Nigerian homes comes from traditional forms of energy like HHK (kerosene) which accounts for 65-70% of the energy consumption in Nigeria, LPG stands at 25%, while other fossil fuels like firewood and coals accounts for the remaining 5%.

Now lets do some basic mathematics from the post above

Annual Consumption of cooking Gas stands at 300,000 MTPA (300million KG)
25% of annual consumption= 300million kg (527million litres)

Now imagine if we can switch another 25% of our population from House Hold Kerosene to cooking gas in the next 36 months

50% of annual consumption= 600million kg (1.54billion Litres)

Considering the negative impact of kerosene on the economy (subsidy) and the environment, it's important for us as Nigerians to look inward and invest in this emerging sector to grow the naira and reduce the emission of green house gases to curb global warming

We cant do it alone, we need to join hands to make Nigeria a cleaner place and become millionaires in the process.

#creatinggreenmillionaires #startnow

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com

Cooking gas business is a very profitable business, but just like every other en-devour of life, it comes with its own challenges.

The purpose of this article is to enable you to have in depth knowledge about what you have not known or hear before in the cooking gas business.

My Name is Emmanuel and i am your Gaspreneur Expert, i will guide you through phases of investment in the cooking gas busines, i am dedicated to
your success so you can trust me to open up on all what you have not been told or on what you are not aware of in this business.

This thread will enable you to make informed decision when you are making decision on when,where and how to start your business as pertain to cooking gas.

What i will be sharing are very important and cannot be ignored or taking with levity. I will draw from my experience and other experiences of other cooking gas business owners so you can learn all what it takes to
start out on a brighter note.

You have not heard this anywhere,LPG Installers and business owners will not even want to tell you,but you will hear and see everything on this thread.

I will also bring to you the latest researches on the cooking gas business and how you can take advantage of this recent developments in the LPG Industry

Welcome to the Gas Side of Life, Stay connected.

For more information call/whatsapp our business development team: 09060325773

OR send us a mail at: gaspreneur@kiakiagas.com