How to Start Gas Plant Business

Today, I bring o you a discussion on the most effective methods to begin effective gas plant business in Nigeria.

Feasibility Study on Gas Plant Business

With short of capita utilization, Nigeria positions among the most reduced oil and gas expending states in Africa. This is sad, in spite of its immense gas assets. Nigeria at present expends around 70,000 MT for every annum and has around 130 LPG plant. Also available are about 7,000 retailing outlets scattered over the organization.

In any case, the nation has a tremendous gas hold of 185 trillion cubic feet. Government’s solid responsibility regarding increment the nearby utilization of gas from 70,000 MT for every annum.

As it stands, this is bound to increase to 1,000,000 MT yearly. There are therefore markets and open doors for the foundation and marketing of condensed oil gas plants in Nigeria.

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Gas Plant Business

Gas Plant Business
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Detailed guide to establishing gas plant business in NIGERIA

Government application procedure

As per arrangement part IV, area, sub segment {2} of the oil determination of 1967, any mass stockpiling or stop for condensed oil gas in Nigeria should be operated with permit.

  • Therefore, application for endorsement to build and operate a melted oil gas filling plant with the end goal of retailing to general society must be submitted to the Directorate of Petroleum Resources {DPR}.
  • This ought to be gone with subtle elements of the proposition and some other data that might be important to the venture.
  • There must be confirmation that the company applying for DPR endorsement is properly registered as a constrained obligation company by the suitable federal service to bargain in oil based good.
  • Other reports that must be appended to the application incorporate assessment freedom testament for the first years.
  • Three {3} duplicates of a plan demonstrating the structures existing or proposed on the site and the connection of the site to the roadway and abutting property must be submitted alongside the application.
  • Also required is a testament marked by the chief federal/state fire officer or an officer approved.
  • The testament from the town planning and police specialist is likewise required. A natural effect evaluation of the proposed plant is additionally required.

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Gas Plant Business

Select a Good Location for Your Gas Plant Business in Nigeria

Similarly, as with any business wander, the area of your gas plant is exceptionally key. On account of this one, it is generally unconventional.

A decent place to find your gas plant is in vicinity of a sprawling neighborhood. This is to guarantee that you are not very far from your objective market. You don’t need your customers to need to make a pointlessly long separation to achieve your business put.

Regardless of the way that you ought to have closeness of the objective market as a main priority, bear in mind that you are managing a profoundly inflammable product. Consequently you should likewise guarantee that your planned area is not encompassed by private structures.

In Nigeria, all state governments have divisions that have the duty of guaranteeing that such businesses are found where they won’t be a risk to the general population.

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Gas Plant Business

Register Your Gas Plant Business

As we have dependably reiterated in this gathering, it is most important to register your business with the corporate undertakings commission (CAC). This is on account of it is in accordance with the laws of Nigeria.

Inability to do as such will pull in some solid punishments from the specialists and now and again, criminal allegations. With the goal for you to be viewed as maintaining a honest to goodness business, it is important.

It is additionally important for you to see whether there are different bodies you need to register with separated from the CAC. For instance, on account of a LPG plant you likewise need to get authorization from the division of oil assets (DPR).

You ought to likewise see whether there are any area particular enrollments that must be finished. This is on the grounds that in Nigeria, different states have their laws and necessities for you to be allowed to work together in their state.

Gas Plant Business

Build Your Gas Plant Infrastructure

In the wake of choosing your area and registering your business, it is currently time to set out about raising up your building.

For a gas filling plant, you will require a mass stockpiling bottle. This is the place you will store the gas you have purchased in substantial amounts. It is from this stockpiling bottle that you will then retail to your customers.

You will likewise need to assemble an open refilling cove. This must be open on the grounds that the amassing of LPG is both harmful and profoundly dangerous. There is requirement for steady stream of natural air to your refilling region.

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Gas Plant Business

Employ Skilled Staff

This is very important. You will require some staff, both gifted and untalented to help you to maintain your business sufficiently.

At the base, you ought to utilize a security protect, secretary/accounts officer and a professional to handle the refilling procedure. In the event that you have sufficient energy in your hands, you can take up a few parts.

Advertise Your Business

There is no utilization setting up a decent business and not letting the world think about it. The importance of ad to a business can’t be over underscored. You can make utilization of flyers and publications to get the message out about your business.

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Gas Plant Business

Seek and Acquire Knowledge

You should dependably be eager and prepared to look for more data about new patterns in the business. It is likewise important that you screen the market slants so you can set yourself up for any projection.

Be Conscious of Risks and Safety

As you set about this business, keep in mind that you will manage exceptionally inflammable products. NEVER play with the safety aspect of the business.

Put up Warning and Instructional Signs

Guarantee that you have striking and prominent cautioning signs to alarm both staff and customers of the fire danger that exists inside the premises.

Each business has its unconventional difficulty. The greatest hazard in cooking gas business is fire blast. This of course, is extremely normal because of the high inflammable nature of liquified gaseous petrol. That isn’t much issue since it can without much of a stretch be relieved or even maintained from a strategic distance.

Gas Plant Business

Get Your Fire Extinguishers Ready

To have the capacity to abridge this, you should be ready at all circumstances to identify when there is spillage in those cylinders. This is essential, as spillage is one of the significant reasons for flame and blast. You additionally need to purchase great fire distinguishers that can be extremely handy in time of minor fire episode.

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Prepare for Market Changes

Another hazard in the business is government control. Ought to government choose to build the cost of LPG, a few purchasers may think that it’s hard to take and need to fast-track to utilizing lamp fuel or kindling. On the off chance that that happens, you lose a few customers and your deals will drop.

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Gas Plant Business


Despite the fact that LPG is generally utilized by illuminated people in Nigeria, the market is National. With a populace of more than 140 million individuals, evaluated national populace development rate of 5.7% for each annum.

There is also a normal financial development rate of 3.5 % in the previous five {5} years, Nigeria has a huge, expanding and sustainable market for condensed oil gas.

The raw materials required for production can be sourced from Nigeria with the offering cost of 12.5 cylinder averaging N2,200. Opportunity additionally exists in the retailing of the product where the speculator can make between N300 – N500 for each 12.5 cylinders.

If you need a complete business plan, please let us know. Or, you want us to help you set up this business, kindly contact us. Otherwise, Please check out these other business ideas you can do in  Nigeria

  1. Thank you so much for the information that I was able to read from your write up here. I wish to know if you have idea of the total cost of setting up a cooking gas refilling plant in Nigeria,
    The price of the tank, the price of the material .
    The fee to get the licence and all that, putting aside the plot of land. I have a land already for the business.

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