STARTING AN LPG SKID PLANT BUSINESS IN NIGERIA

Natural gas is the cleanest burning fossil fuel and is abundantly available in Nigeria, which has the largest reserves in Africa and the ninth largest in the world.
According to the Nigerian National Petroleum Corporation (NNPC)
Nigeria has around 202 trillion cubic feet (TCF) of proven gas reserves plus about 600 TCF unproven gas reserves.

Liquified Petroleum Gas (LPG) popularly known as cooking gas is becoming an increasingly popular fuel for cooking in Nigeria. The demand increased from 110,000MT in 2013 to 400,000MT in 2016 and to 600,000MT in 2018. It is projected that by 2025, the demand to increase by 2,000,000MT.

There are good reasons why Liquified Petroleum Gas (LPG) is a better option. LPG is environmental-friendly, much cheaper to average Nigerians and even to the poor class and most especially cooks meal faster.
The market for LPG is increasing by the minute as even rural areas are shifting from using kerosene and firewood to LPG. This implies that investing in cooking gas business is very promising.

Building an LPG plant usually cost a lot of millions. One will be estimating to spend more than N150,000,000 in setting and starting up an LPG plant business in Nigeria. Though the cost varies with the size, but definitely a lot of naira will be spent.

But with the new LPG skid plant, one will have a low investment cost in starting up a cooking gas plant business. LPG skid plant is more like a mini LPG plant. One does not need to build a very big stationary gas plant in order to commence business.
With LPG skid plant, one will go for a small portion of land, few Labour and most especially low investment cost.

With the LPG skid plant, one can also start selling cooking gas to customers in his petrol station. You will not need to acquire bigger lands. All you need is a small portion/space in your petrol station to install the LPG skid plant and kick start your business.
LPG skid plant is cheaper, occupies a small space, safe to operate, requires few staffs to operate and then most especially easy to be moved from one location to another.

WHAT YOU NEED TO START-UP AN LPG SKID PLANT BUSINESS

REGISTRATION: To make your business to be recognized as legitimate business, you need to register your business with CAC (Corporate Affairs Commission). This is the regulatory body for businesses in Nigeria. All you need is your registration fee and fulfill their requirements. You will also need to find out if the location will attract any other registration because different states have different laws governing businesses.

LAND: Land is more crucial in setting up an LPG plant because of the environmental and health implications of the cooking gas. Department of Petroleum Resources(DPR), requires the position of the plant must be at least 15meters from any building containing flammable materials, for instance, residential buildings, filling shed among others before license will be granted.

But with LPG skid plant, big size lands is not required. In building a big stationary cooking gas plant, one will  need to acquire a big size land, usually 4 to 6 plots of land or even more. But in the case of LPG skid plant, 1 to 2 plots will be required. So, you don't need to spend much in acquiring a land for the business. You only need to make sure the position of the plant meet up with the DPR requirements.

CAPITAL: To be frank, starting a cooking gas plant business requires a huge capital, because you would need to buy all the necessary equipment which the DPR will have to inspect. Some of the equipments includes the LPG tank itself, LPG pumps, dispenser and nozzle, control box, leakage detector, water cooling system, level meter, valves and many more.

The LPG skid plant offers you the opportunity to spend less in capital and achieving your dreams of investing in cooking gas business. With the LPG skid plant you will need as low as N7million to acquire all the necessary quality equipments to kick start. But big stationary plant will cost you not less than N48million.

LABOUR: LPG skid plant will require few capable staffs to operate and help run the business.

LICENSE: DPR will require you to have the following permits:
 *Police Report
*Town Planning Permit
*Fire Planning Approval
*State Land and Physical Planning Permit
*Department of Petroleum Resources License
The above will roughly cost you N600,000 to acquire.

Apart from the above, you would also need documentation to process the state L&P and the DPR permits;
*Environmental Impact Assessment(EIA)
*Architectural Drawing
*Structural Drawing
*Mechanical Drawing
*Electrical Drawing

Ben-Fidelvic Global Services Limited is here to help you achieve your dream in investing in LPG business. We will supply, install, maintain your LPG skid plant.

For more information on cost and different sizes of the LPG skid plant contact;
Ifeanyichukwu on 08068090983 08133299971
E-mail: mrvicbenson91@gmail.com