LPG Refilling Cooking Gas on Petrol Station Construction & Licensing Requirements
BlogMay 6, 2020

We explained the LPG Refilling Retail Outlets attached to Petrol Stations construction requirements, DPR Site Suitability assessment, Approval To Construct, Licensing and more.

Just as we have stated in other LPG Plants construction, approval and licensing, the requirements for construction of LPG Refilling Plant Aboveground Storage Tanks,  LPG Underground Storage Tanks Plant, and LPG Add-On in Retail Outlets attached to Petrol Stations are not the same. Though they have similarities.

Read: LPG Refilling Aboveground Storage Tanks Plant Construction Approval & Licensing Procedures

Read: LPG Refilling Underground Storage Tanks Plant

What is DPR LPG Refilling Plant on Petrol Stations Approval?

The DPR LPG Refilling Plant on Petrol Stations approval is a major requirement when setting up a LPG or cooking gas plant. You cannot operate a LPG Refilling Plant on Petrol Stations or cooking gas plant anywhere in Nigeria without the approval of The Directorate of Petroleum Resources (DPR).

But DPR approval for LPG Refilling Plant/ cooking gas refill plant is in 3 phases. And all the 3 takes place in stages, from the beginning of your gas Plant setup and before the commencement of operation of the gas plant. Even after the gas Plant setup, DPR will continue their regulatory oversight for as long as the business exists.

Here are the 3 DPR approvals you will need at when setting up a cooking gas refill plant:

  1. Site Suitability Approval
  2. Approval to Construct
  3. License to Operate

These 3 DPR Approvals will be issued at different stages of the setup. The first one being the site suitability approval, followed by the approval to construct and license to operate.

LPG Refilling Plant on Petrol Stations Site Suitability Approval Procedures

This is the first step when starting a LPG plant/ cooking gas refill plant. It’s also the first approval required before any thing else is done about starting your cooking gas refill plant. Even though you can actually conduct the physical Suitability test for your location, you will still need DPR to give their approval.

It is advisable that you conduct an independent assessment of your location before applying for DPR site approval.

This should have been done even before you purchase the land. But since most of you already have the land even before you think of starting a cooking gas refill plant, just get a cooking gas consultant to do complete site assessment. This independent assessment will ensure both Suitability and viability assessment is done together.

It’s not the job of DPR to verify the viability of your location for LPG plant/ cooking gas refill plant. Their job is to approve a suitable site. To ensure that the safety of the people is adhered to and that your LPG plant won’t constitute any environment problem as well.

 

Read: How to Obtain Oil & Gas Business Permits/ Licenses

 

DPR Site Suitability Assessment list on LPG Refilling Plant on Petrol Stations

Qualified DPR staff will physically visit the proposed location for LPG Plant or Cooking Gas Refill Plant foe site Suitability assessment.

There are specific things DPR looks for to give their site Suitability Approval. These conditions must be met before DPR approval for site Suitability be issued to you.

– Land size test will confirm if the land meets the minimum size required for gas plant by DPR

– Closeness to a residential assessment is to ensure it’s at least 15 meters away from any residential building. Although this particular condition maybe conflicting in most cases.

– Closeness to a public place like church, school, market, mosque and any other public place that large number of people gather.

– Closeness to high tension or major power installation or public infrastructure like petroleum pipeline. This one too will cause DPR Approval denial.

– Soil contamination test is another requirement. DPR will conduct soil test to ensure underground water will not be contaminated in any way by waste products from your gas refill plant.

 

Approval To Construct LPG Plant/ Cooking Gas Plant attached to a Petrol Station after site Suitability

The next DPR approval after site Suitability assessment is approval to construct. Once the site is suitable and approved by DPR, you can now apply for approval to start constructing your gas refill plant.

 

The site approval confirms the Suitability of your location for a gas refill plant. And once this is given by DPR, you can apply for the approval to Construct the gas plant.

 

Read: DPR Permit Requirements

 

DPR Approval to Construct is not just an approval allowing you to start construction of the gas plant. It also approves the design and pipe architecture for the gas plant. It’s more of a design Approval than just go and start constructing.

Note: The validity of the Approval To Construct LPG Plant/ Cooking Gas Plant shall be two (2) years.

Apart from DPR Site Suitability assessment, Approval To Construct and Licensing of your LPG Refilling Retail Outlets attached to Petrol Stations, DPR will frequently monitor LPG operations to assess the level of risk, amount of product, familiarity with company operation, procedure and track records. Also, DPR shall stop any LPG operation or prohibit planned operations due to safety concerns or unacceptable risk.

 

Requirements on Storage Capacity

LPG Add-On operations is the introduction of LPG refilling activities in licensed retail outlets on a patrol station. The expected allowable LPG storage capacity shall be as follows:

  1. One (1) Tonne to Five (5) Tonnes.
  2. For applications on LPG storage capacity greater than 5 Metric Tonne, the applicant shall apply for a stand-alone, fully autonomous gas plant as contained in Section I of this Guideline.
  3. At least 1,300 square meters of land size is required for any retail outlet to accommodate LPG Add-on.

 

Other LPG Refilling Outlets on Petrol Stations Requirements

  1. The add-on must not have adverse impact on the operations of the retail-outlets.
  2. There must be physical demarcation (Wire mesh, wire fence, bollards, etc) for the LPG. Only trained and authorized operators should have access to the demarcated area.
  3. There must be a minimum distance of 5 meters from underground fuel storage tanks.
  4. All LPG vessel storage tanks intended for retail-outlet must be skid-mounted and of a maximum capacity of 5 Metric Tons.
  5. All skid mounted LPG bottles/dispensing units must not be containerized in Autogas or LPG standalone skid.
  6. For applications on LPG storage capacity greater than 5 Metric Tonnes, the applicant must apply for a stand-alone, fully autonomous gas plant.
  7. Safety audit must be carried-out annually by a DPR accredited company before renewal of operating license.

 

Read: Nipex Registration Requirements 

 

Application Procedure for LPG Refilling Outlets attached to Petrol Station

Application for LPG Add-On in retail outlets shall be forwarded to the Director, Department of Petroleum Resources (DPR), 7, Kofo Abayomi Street, Victoria Island, Lagos or through the DPR Operations Controller within the jurisdiction of the proposed location or site, giving full details of the proposals.

All applications shall be accompanied with:

  1. A copy of the current storage and sales license of the retail outlet.
  2. The retail outlet as-built layout drawing.
  3. Proposed layout drawing for the LPG Add-On indicating safety distances.
  4. Fire safety certification issued by Federal or State Fire Department on the proposed LPG Add-On.
  5. Relevant town planning approval for the proposed LPG Add-on.
  6. Application fees, in accordance with the existing template for LPG plants.

 

Safety Distances for Liquefied Petroleum Gas add-on (attached on Petrol Station)

Maximum capacity (in Metric Tonnes) Maximum separation distance for above ground tanks (in metres)
Of any single tank Of any group of tanks From a building boundary or fixed source of ignition to the tank
No fire wall With fire wall Between tanks
1- 5 1- 5 5.0 2.5 1.0

 

Read: One of Best School Management Software

 

Procedure & Requirements for A Newly Completed LPG Add-On License 

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 Director of Petroleum Resources (DPR) in Nigeria.

  1. Three copies of the approved 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
  2. Three 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.
  3. A provisional approval letter and fire report by Chief Federal/State Fire officer or an officer authorized by him on his behalf, that he is satisfied with the proposed arrangement for the prevention of fire.
    Note: This approval must come from state where the LPG station will be situated. 
  4. A letter from the appropriate Town Planning Authority, authorizing siting of the Liquefied Petroleum Gas filling plant at the proposed site. The Town Planning approval stamps on all design drawings are accepted.
  5. Three copies of Memorandum and Articles of Association of the company and evidence that the company is duly incorporated by
    the Federal Ministry of Trade to deal in petroleum products.
  6. Tax clearance certificate for the preceding three years of application or Tax exemption certificate for new company.
  7. An application fee, as may be determined by DPR, in Bank draft or certified cheque made payable to “Federal Government of Nigeria DPR Fee Account” is payable on submission of application.
  8. Three copies of Codes, Standards and Specification adopted in the design of the tanks and ancillary equipment.
  9. A copy of Safety, Health and Environment (SHE) proposal for the proposed plant and Environmental Impact Assessment report of the site.

Click for more: LPG Specifications, Design & Installation

 

Procedure for Renewal of LPG Plant Operating License

On expiration of an existing LPG plant operating license, the Company shall apply to the nearest DPR office and the following statutory/technical requirements shall be met or provided to facilitate the license renewal of the LPG plant.

Documentation:

  1. A completed application form for the renewal of LPG license.
  2. Prescribed application fee as may be determined by DPR. The LPG license grant fee shall depend on LPG storage capacity installed at the plant.
  3. Renewal fire safety certification issued by Federal or State Fire Department.
  4. Current Company Tax Clearance Certificate.
  5. List and Evidence of trained staff by a DPR accredited consultant.
  6. Two (2) copies of updated Approved Standard Operating Procedure (SOP) for the proposed LPG plant operations in line with the DPR SOP template (If necessary).
  7. LPG tank and piping pressure test reports and certification where applicable. The Pressure test shall be carried out by a DPR accredited company and witnessed by the Director’s assigned officer.
  8. Photographs of Plant showing its amenities.
  9. Copy of expired LPG plant operating license.

 

Read: NOGIC JQS Registration

 

LPG Plant Amenities:

  1. Functional Automated/Manual leak tester.
  2. Functional Fire alarm system and mounted gas detectors at designated areas.
  3. Reference scale.
  4. Safety warning notices and Personnel Protective Wears for the Plant operators.
  5. Emergency shut down system in at least two locations (At the Gate and operations area)
  6. Visible display of Emergency Telephone numbers of Fire Service, Police and DPR.

 

DPR 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.