This article explains LPG Gas Filing Station/ Plant business, the opportunities for the business in Nigeria, estimated cost to set up LPG gas plant, the licenses needed to Gas Filing Station/ Plant, and finally, how to start the business. Feel free to consult us for compliances/ licenses and engineering/ construction of LPG Gas Filing Station/ Plant business in Nigeria.
INTRODUCTION
The LPG Gas Filing Station/ Plant business in Nigeria is a good business now and it still have a good future. With the unreached millions of Nigeria that need gas and government gas expansion program in eliminating gas flaring and CNG for vehicles, there is no doubt that the business has a good future.
But it is said, many can cook food but it’s not everybody that knows how to cook food the public will eat and keep coming for more. So, it is in oil and gas consulting business, many post what they only read but not many that knows the practical expect of the business that will save you the investor money and time to start.
Read: LPG Gas Filing Station Design & Installation
The LPG Gas Filing Station/ Plant business in Nigeria could be cost intensive business, coupled with high inflation faced in Nigeria. Starting from cost of getting a land in a good location, to securing approvals, construction to stocks, it could cost some good money. Though the size of the LPG Gas Filing Station/ Plant one has in mind matters on the cost.
Just like any other business that will succeed, conducting good market research and performing feasibility studies are crucial steps in establishing a successful LPG business. Learning from established industry players and adopting best practices can significantly enhance the chances of success in this evolving market.
The opportunities for LPG business in Nigeria
The LPG distribution industry in Nigeria offers several promising opportunities for entrepreneurs and investors.
- The Nigerian government is actively pushing for the adoption of LPG as a cleaner and more sustainable cooking fuel. This commitment to promoting LPG usage is creating a growing market for distributors. As more Nigerians embrace cooking gas, there is a significant profit potential for LPG distributors.
- There is also an opportunity to tap into the gas value chain by selling LPG cylinders and related accessories alongside gas distribution. Offering a comprehensive service can attract more customers and generate additional revenue.
- Also understanding the rising demand for LPG in households is key to capitalizing on the opportunities in the market. As more households make the switch to cleaner cooking fuels as a result in the rise in price with other petroleum products eg kerosene, the demand for LPG continues to rise thereby becoming a substantial customer base for LPG distributors.
Read: LPG Gas Filing Station Approvals & Licenses
LPG Gas Retailing Station or Distribution Business Requirements
- You need to secure a land in a good location that will pass suitability approval from NMDPRA. Space will not allow us to write in details some of the yardstick that will guarantee your land fit for approval from the authority.
- Get approval from the authorities like NMDPRA, Fire Service, Local government, Police and any other relevant authority.
- Complete your plant structures/ building as designed and get the relevant authorities to certify your construction.
- Create your product awareness and source product and start selling.
Please, in as much as this write-up is good and rich on experienced, you still need guide.
Estimated cost to set up LPG gas plant
The cost of starting a gas station business in Nigeria can vary depending on several factors, including the size and location of the land, the approved station and facilities, the type/ numbers of dispenser you choose, and your stock/ products.
A standard LPG Gas Filing Station/ Plant which is 10 tons could cost between thirty million to fifty million Naira. Several factors varies this estimate.
Setting up addons mini plant like 2 tons, 2.5 and 5. Tons could be within the range of ₦11 million to ₦20 million.
Some of the costs you must factor in our office buildings, LPG tank(s) and pumps , fire prevention system, dispensers, products to sale, water boreholes, and electrical works.
Read: Pipeline Construction & Maintenance Services
Summary on How to Start Gas Filing Station/ Plant
Legalize the business with business/ company registration process with government authority corporate affairs commission (CAC). Get the tax clearance certificate (TCC) of the business. Yes! Don’t the question many do ask us on this. A day-old business in Nigeria is qualify to obtain her TCC. I will advise when registering the business, you should go for limited liability company. It’s not expensive as people think. This qualifies your business to meet and apply all required compliances and scale the business.
Also, as heighted before, make sure you obtain all the necessary approvals and licenses. It is the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that regulate LPG business in Nigeria and final approval to operate must come from them.
Feel free to contact us for your LPG Gas Filing Station/ Plant business compliances/ licenses and the engineering/ construction services.