We explained LPG plant Licence Requirements and the procedures for those who want to start Liquefied Petroleum Gas (LPG) or cooking gas business in Nigeria. As we listed, the increase on gas reserves, underutilization of Liquefied Petroleum Gas (LPG) for decades, federal government plan to end gas flaring (mass wastage), the verse and rising Nigerian population, with the intentionally and deliberate acts by authorities to make cooking gas’s main substitute (kerosene) scarce plus cost advantage cooking gas have against its main substitute and many more, LPG Business in Nigeria a way to go. It is a business to invest your money.
What is LPG?
LPG: is Liquefied Petroleum Gas or liquid petroleum. Liquefied Petroleum Gas – LPG – constituents are primarily propane, butane, isobutane, butylene, propylene and mixtures of these gases. LPG gas constituents are produced from crude oil reefing and natural gas processing. They are liquid under pressure and gas at room temperature and pressure.
Liquefied Petroleum Gas (LPG) is mixture of flammable hydrocarbon gases that include propane, butane, isobutane and mixtures of the three LPG gases. LPG is commonly used for home heating gases, cooking, hot water, and autogas – fuel for LPG cars and vehicles.
LPG: license is one of the licenses issued by Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Read: Central Gas Supply Systems/LPG Reticulate System
There are three (3) approval levels involved.
- Site Suitability approval application
- Application for Approval to Construct (ATC) and
- Application for License to Operate
Required Documents for LPG Plant/ Cooking Gas Plant Licence
The following requirements are to be met before approval, construction, modification, relocation and licence of a Liquified Petroleum Gas (LPG) plant and auto gas station by Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Nigeria.
- A copy of land plan with Layout plan drawings showing the existing or proposed buildings on the site and the relevant distances to the roadways and adjoining properties, if any.
The drawing include:
– Architectural Drawing
– Structural Drawing
– Mechanical Drawing
– Electrical Drawing - Environmental Impact assessment (EIA) / HSE as required.
- Copies of Piping and Instrumentation Diagram (P&ID) of the gas filling plant and manufacturers’ data sheet of the storage tanks with codes and standards adopted in the design.
- An approval Federal/State Fire Service/ officer that he is satisfied with the proposed arrangement for the prevention of fire.
- A letter from the appropriate Town Planning Authority, authorizing siting of the Liquefied Petroleum Gas filling plant at the proposed site.
- Police Clearance from state where the LPG station will be situated.
- Tax clearance certificate for the preceding three years of application.
- An application fee, as may be determined by NMDPRA.
- Copy of Codes, Standards and Specification adopted in the design of the tanks and ancillary equipment.
Read: LPG Business & How to start LPG Business in Nigeria
Gas Storage Tank Design Specifications and Fittings.
(a) All tanks for the storage of liquefied petroleum gas shall be designed for a working pressure corresponding to the vapour pressure and at the highest temperature that the tanks are likely to reach.
(b) All storage tanks should be fitted with the pressure gauge and devices for measuring the liquid content and its temperature. The maximum quantity of LPG filled into any tank should be such that the maximum operating temperature it would occupy shall not be more than 95% of the capacity of the storage.
(c) Excess flow valve should be fitted to prevent the loss of liquefied Petroleum gases from storage tanks, transport tanks and points where flexible hoses are used. .
(d) Remote control hydraulically operated shut-off valves should be fitted to each storage tank.
(e) Water sprinkler system should be provided on top of the gas vessel. Access ladder to the top of the gas storage should be provided for inspection and maintenance needs.
Cylinder Filling Shed.
(a) Cylinders should be filled with LPG only in building designed for that purpose. Filling buildings should be open-sided. The filling of cylinder: should not be done in cellars of upper story of building.
(b) Floor should be near ground level or raised to a minimum of 1 meter to vehicle platform height.
(c) A fence of at least 2 meters high should be provided to enclose the filling and gas storage area if the filling is not carried out within a fenced area.
(d) No duct or blow-off line should be directed into or discharged near sewer systems or drains used for other purposes.
(e) Water drains from the filling area should be provided with effective seals.
(f) Piping should be protected or painted in appropriate industrial colour.
(g) Fire extinguisher in sufficient quantity should be provided at strategic places within the premises and the plant personnel should have easy access to the extinguisher.
(h) Cylinders should not be stored in the cylinder filling area. An area within the plant should be designated for cylinders storage.
(i) Adequate lighting should be provided to illuminate the working and the storage areas of the plant.
Read: Nipex Registration Requirements
LPG / Cooking Gas Plant Design and Installation
General Design:
The design of vessels, vessel fittings, pumps, dispensing systems, hoses, filling nozzles and adaptors and breakaway/pull-away systems should be designed for efficient and safe operations in line with applicable codes and standards.
Installation:
The installation and commissioning of the system should only be undertaken by competent personnel, and in accordance with manufacturer’s instructions.
Written procedures should be drawn up for installation and/or commissioning. Mineral Oils Safety Regulations (MOSR), 1997 should be observed in these installations, particularly the taking of all the necessary measures to reduce risk as much as reasonably practicable, including the replacement of the hazardous by the non-hazardous or by the less hazardous.
Read: NUPRC Permits (OGISP) Requirements
Procedure for Renewal of LPG Plant Operating License
On expiration of an existing LPG plant operating license, the Company shall apply to the nearest office and the following statutory/technical requirements shall be met or provided to facilitate the license renewal of the LPG plant.
Documentation:
- A completed application form for the renewal of LPG license.
- Prescribed application fee as may be determined. The LPG license grant fee shall depend on LPG storage capacity installed at the plant.
- Renewal fire safety certification issued by Federal or State Fire Department.
- Current Company Tax Clearance Certificate.
- List and Evidence of trained staff by a DPR accredited consultant.
- Two (2) copies of updated Approved Standard Operating Procedure (SOP) for the proposed LPG plant operations in line with the SOP template (If necessary).
- LPG tank and piping pressure test reports and certification where applicable. The Pressure test shall be carried out by a commission accredited company and witnessed by the Director’s assigned officer.
- Photographs of Plant showing its amenities.
- Copy of expired LPG plant operating license.
LPG Plant Amenities:
- Functional Automated/Manual leak tester.
- Functional Fire alarm system and mounted gas detectors at designated areas.
- Reference scale.
- Safety warning notices and Personnel Protective Wears for the Plant operators.
- Emergency shut down system in at least two locations (At the Gate and operations area)
- Visible display of Emergency Telephone numbers of Fire Service, Police and DPR.
Read: NOGIC JQS and NCEC Registrations (Nigerian Local Content)
The commission officers will conduct a license renewal inspection of the plant and auxiliary equipment.
When all the requirements listed above are satisfactorily met, Management will consider the grant of LPG plant operating license renewal to the Company.