In this post, a Guide to Setting Up CNG Gas Filling Station Business and requirements in Nigeria, we covered how viable is the business, sourcing of CNG Gas product, steps to follow, the compulsory compliances from regulatory bodies, the consultancy service on construction/ engineering supports and more. Feel free to contact us.
There are several things that is deriving CNG Gas or other Gas business in Nigeria today. The 2021 PIA open up many businesses in Nigerian oil and gas sector. More with, the Nigerian federal government Gas Flaring Commercialization program and to utilize Nigerian big gas deposits that are flared are another boost to CNG Gas Filling Station/ CNG Gas station.
Also, in search alternatives for fuel the country has been heavily depend on for many decades, the recent government policy on fuel subsidy removal that gave rise to high cost of fuel, the Nigerian Net Zero Carbon Emissions year 2060 targets are some the factors that has made CNG Gas Filling Station business a good business in Nigeria. At the moment, the need to meet local demand for CNG Gas product is very high. The business has a great future if the government policies are maintained.
Read: Buy Your Butane & Propane Gas
What is CNG Gas Filling Station business?
A CNG filling station is a place that sells and dispenses compressed natural gas (CNG) to vehicles. CNG is a fuel that’s made up of methane that’s been compressed to a small fraction of its normal volume. It’s used as an alternative to gasoline, diesel, and other fuels in modified internal combustion engine vehicles and in bi-fuel vehicles.
Stages to Complete CNG Filling Station
There are three key stages and steps to Complete CNG Filling Station and obtain a license to sale in Nigeria. The CNG Filling Station stages, steps and requirements can be apply to setting up LPG Gas Filling Station business except in few areas where CNG Filling Station are unique.
- Register your business/ company with CAC
- Obtain Tax Clearance Certificate
- Get a land or rent/ buy an existing CNG Filling Station
- Apply for Suitability approval. (Stage/ step 1)
This involves submitting the applicable documents and paying the official fee that is determined through your application.
Site inspecting is required at this stage. - Apply for Approval To Construct (ATC). (Stage/ step 2)
There are several compliances/ documents that you meant to submit with the applicable and pay the correct official fee to submit your application.
Site inspecting is also required at this stage. - Integrity tests. At this stage, the authority will see that the engineering, construction and safety system of the filling station is in order.
- Apply for Certificate/ License to Sale/ Operate. (Stage/ step 3)
This is a license that permits you to operate the CNG filling station. At this stage, you will supply all other licenses/ approvals you acquired previously.
Staff training certificate is also a requirement here. - If you to operate in Lagos state, will require this extra compliance with the Lagos Ministry of Energy & Mineral Resources. See the steps below.
Read: Oil & Gas Operational Business Permits
Some of Key Material Required for CNG Filling Station
LPG or CNG tank. This is where your gas product is store before dispensing to buyers. LPG or CNG tank differs in sizes and materials used in making the tank. The size of your gas tank will determine some requirements to meet before approval can be done.
Dispenser:
Tank
Pump(s)
Fire Prevention System
Fire Fighting System
Gauges
Valves
Flanges
Etc
Read: NCEC Certificate Registration & Requirements
Reequipments for CNG gas station License in Nigeria
- Company CAC documents
- Obtain Company Tax Clearance Certificate
- Get a Federal/State Fire Service Report
- Obtain a Nigerian Police Report
- Provide HSE Report or Environmental Impact Assessment (EIA).
- Approved Drawing/ Building Plan from Local Garment Area.
- Approved Drawing/ Building Plan from Physical Planning & Urban development Ministry
- Pay applicable fees
- Provide the integrity tests for the storage tank
Applications For Clearance to Set Up CNG Filling Stations in Lagos State
The following are the steps involved in applying for this clearance or permit.
- Register & Create Account using the company’s official email address and fill in requested information.
- Read the application requirements of the application of interest, noting the department and application fee.
- Pay the application fee. You are required to attach the receipt and input the receipt number in the appropriate application form field.
- Click on the Apply link or button on the guidelines page, the application requirements page or licenses page to access the application.
- Select the Department and application of interest.
- Select the category you have paid for.
In conclusion
The Compressed natural gas (CNG) or Liquefied petroleum gas (LPG) business in Nigeria is one of the viable businesses but required reasonable capital to start the business. From all indication, the business has a great future. It has chains of other business activities on can go into.
Feel free to contact us for your CNG/ LPG Gas business in Nigeria. We are your best partner in gas products supply in Nigeria and installation and maintenance services.