Naija LPG - Training, Constructions, Repairs, Maintenance, Depot Delivery and LPG Calculator How To Set-up Mini Cooking Gas Plant In A Petrol Station

How To Set-up Mini Cooking Gas Plant In A Petrol Station

How To Set-up Mini Cooking Gas Plant In A Petrol Station

Setting up a mini cooking gas business in a petrol station can be a profitable venture if done correctly. First, you need to analyze the demand for cooking gas in your target area. Identify your potential customers (households, small restaurants, etc.). Check out your competition and understand their pricing and services.


1. Create a Business Plan

Next, outline your startup costs, operational costs, and revenue goals. Include details about your target market, pricing strategy, and expansion plans.


2. Obtain Necessary Licenses and Permits

Register your business with the appropriate authorities. You also need to obtain safety certifications and permits for handling and storing LPG. And comply with local and environmental safety regulations.

Get approval from relevant authorities (DPR in Nigeria or similar agencies in your state). Also, you need to secure safety certifications and an Environmental Impact Assessment (EIA) report.


3. Choose a Petrol Station in a Strategic Location

Find a location that is easily accessible for your customers. Make sure the space is well-ventilated and meets safety requirements. If possible, select area near residential areas or small businesses.


4. Set Up Your Storage and Equipment

Purchase LPG cylinders from authorized suppliers. Arrange for proper storage racks and equipment, such as scales and leak detectors. Make sure the storage area is safe, dry, and away from direct sunlight or heat sources. 

Make sure you maintain a safe distance between the gas plant and petrol pumps. Make sure you engage licensed engineers to design and set up the mini plant. Install LPG storage tanks, dispensers, safety equipment (fire extinguishers, leak detectors), and signage.


5. Partner with Gas Suppliers and Petrol Station Owners 

Build relationships with trusted LPG wholesalers or distributors. Negotiate favorable terms with the own of the petrol station you want to use, to maintain a proper communication. Focus on building strong relationships with customers, investors and suppliers


6. Hire and Train Staff

If you plan to hire employees, make sure they are trained in handling LPG safely. Teach them basic customer service skills for dealing with customers. Never forget to maintain fire extinguishers and safety equipment on-site.


7. Market Your Business

Use flyers, social media, and local ads to promote your business. You can offer discounts or loyalty programs to attract and retain customers. Also focus on providing excellent customer service to build trust.


8. Set Pricing and Offer Services

Set competitive pricing while ensuring a healthy profit margin. Also consider offering value-added services such as home delivery or cylinder installation.

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Estimated Costs Of Setting Up Mini gas Plant In A Petrol Station (in Naira)

Setup Costs: ₦5,000,000 - ₦15,000,000 (depends on scale and location).

Licensing and Approvals: ₦1,000,000 - ₦2,500,000.


In Nigeria and in some low income countries, we learn about "second level" techniques, ideas and approach that allows the transfer of LPG from one gas tank to another. This is known as the tank-to-tank method. The 50kg cylinder tank, the Calor and Flogas brands, are mostly used by local LPG resellers for resales, using the tank-to-tank method. The 50kg gas cylinders with the typical compliment of a single-stage regulator, are connected with the help of a pigtail hose, and attached for the transfer of LPG gas in to another tank.

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We provide information on all LPG related services, including training, constructions, depot pricing, delivery, repairs and maintenance. Our goal and mission is to make LPG gas available and accessible to every household in Nigeria.

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