Naija LPG Blog: Repairs, Maintenance, Depot Prices and Gas Price Calculator How To Setup A Low-cost LPG Mini Cooking Gas Plant In 2024

How To Setup A Low-cost LPG Mini Cooking Gas Plant In 2024

Do you want to start a mini plant for sales of LPG cooking gas? Do you know it's more profitable than petrol filling station, and cost even less to setup and manage?

How To Setup A Low-cost LPG Mini Cooking Gas Plant In 2024

READ MORE: LPG Gas Plant Startup Budget: How Much Can I Budget To Start Cooking Gas Refilling Business In Nigeria?

In this article, I will show you how to  setup a mini cooking gas plant anywhere, in your neighborhood, inside an estate, residential areas and so on - what you must put in place to have you get started - from licence, documents, fire service approval, training and the best way to setup your mini plant cost effectively, without going bankrupt. I will show you how to recover back your money in the business, how to take profits, ROI (Return On Investment), and how to order LPG from reliable depot suppliers.

Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!

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https://selar.co/87nd

First, you need to understand the huge potential in cooking gas business in Nigeria and the need to start now. LPG gas business is an untapped goldmine. Only 15% have been explored. Here at Naija LPG, in this article, we will teach everything from A to Z.

The good thing about the mini gas plant is that, it can be setup anywhere, in the city or even in remote villages. As long as gas consumption is high in an area, this cooking gas business can be setup there.

Although, the current cooking gas plant saturation point is as low as 15 percent, but it will soon grow to over 50 percent. The reason to start now is because gas plants are based on approvals from the Directorate of Petroleum Resources (DPR). And as soon a gas plant is approved for a location, it may not accommodate more gas plants within same environment. Cooking gas plant enjoys some form of monopoly due to restrictions and approval processes.

Did you know Nigeria only boast of less than 35% of its LPG market potential?

This shows we still have a long way to go. The penetration level for cooking gas plants is either poorly located or under located in some places. But with the recent government approval of the new cylinder production in the past 3 years, and marketing into law, the emergent of the Dangote refinery, will make LPG gas consumption grow faster than anticipated.

Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!

👇 👇

https://selar.co/87nd

And with the introduction of LPG cylinders skid refilling plants to bring closer gas closer to the consumers, we are going to meet 50% saturation sooner. This Mini LPG cylinder refilling plants are suitable for cooking gas plants located closer to the consumers, and you can purchase one to install on an approved location.

This mini plants are also mobile and easy to operate. This type of refilling plants requires very small piece of land and they can be easily relocated to a more profitable location. The plants also have more than 20 years operating life span.


What is an LPG Skid plant?

The skid package is a turnkey or Modular LPG cylinder refilling plant. Once delivered, the skid unit only requires that you fill the tank, connect to electrical service and you are ready to start dispensing gas on sale. This skid type LPG cylinders refilling plants have almost the same features with the stationary type refilling plants.

They are ideal solutions when entering new markets and rebuilding or renovating existing gas plants. LPG skid consists of a storage vessel (tank), bulkhead, valve package, piping package, pump with electric motor, dispenser (single or double nozzle) and shutdown system all self-contained on a skid or frame. A skid system comes with a pump and electric motor for handling bobtail duties and gas dispensing.

They are easy and safe to operate. The skid systems can be equipped with gas detectors and gas alarm equipment for safety, however, not necessary. The disadvantage of skid system is that they are open to environmental conditions so the tanks might need repainting yearly.


Types Of Mini Gas Skid Plant And Costs

There are different types of mini gas skid plants, sometimes called complete setup skid. It is mostly determined by the size and litre of the tank they come with. They each dispense cooking gas and can be used for your operation, depending on your need and demand.

Below are the complete setup system and tank sizes:

1 ton plant: N2.5 million

1.5 ton plant: N4.2 million

• 2.5 ton plant: N6.5 million

• 5 ton plant: N20 million

The prices can vary due to few factors like:

> Is it foreign tank or local fabricated?

> Is it a single nozzle dispenser or double nozzle dispenser?

> What motor pump was used?

Note: These prices are estimates. So, they can change, either to go up or to come down. You will need to reconfirm cooking gas tank prices upon making a purchase decision. The figures here are for planning purposes. Also note that there are cheaper options, and when you are ready to setup contact us for details.

Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!

👇 👇

https://selar.co/87nd

When starting mini cooking gas plant, there are key things to begin with. The first one is to getting a DPR licence for the area you want to setup your cooking gas plant. It's easy to ignore this and assume that it doesn't matter. Most gas plants never did this and some of them were eventually close down.

But the truth and the fact about LPG gas business is that, LOCATION IS THE KEY!  It's not all the time that a location is viable for cooking gas business. You will need to do a thorough research on the location you want to setup, know how sales are in that area. Is it close to T-junction, boarding schools, universities, restaurants, marketplace and so on? Knowing all this will help you from making wrong investment in a wrong location.

To avoid DPR wahala, the minimum land requirement to setup this LPG gas plant is 1 plot of land and 2 plots if setting up 10 tons. However, it's better to stay on a safe side when dealing with DPR officials. The officially recommended size of land is 100 meters by 100 meters. Most plot of land are either 60 meters by 120 meters or 50 meters by 100 meters.

READ MORE: LPG Gas Plant Startup Budget: How Much Can I Budget To Start Cooking Gas Refilling Business In Nigeria?

To decide on the best location to setup your mini gas plant, consider a highly populated residential areas. Determine the demand for cooking gas in that area, decide on the best location within the place for your business. Your ideal location should be an area with high traffic such as a busy road, street or street junction close to a market place, as said earlier on. But avoid locations with high tension poles or school vicinity as this could pose a huge problem during licensing by officials from DPR  (Department of Petroleum Resources) and even fire service.

After setting up your cooking gas plant, the most important part of your operation is the logistics of gas supply. You need the services of a large cooking gas logistics company. One that has a combined supply and transportation network in the industry, and one that is not too far from your gas plant. And you have know that cooking gas is supplied using Bobtails and Bridger, long location means high logistics fee. Also, most LPG gas suppliers hate delivery to areas known for bad roads.

READ ALSO: How Joining LPG Cooking Gas Seller Association Can Be Beneficial For Your Gas Business in Nigeria

READ ALSO: What Size Of Gas Plant Can A Million Naira Budget Setup In Nigeria?

A complete setup mini skid plant is operational within hours of delivery. Quick return of investment within a short period.


Are you considering venturing into the LPG gas plant business or already running one? Don't let unexpected losses derail your success. GET YOUR COPY NOW!!!

👇 👇

https://selar.co/87nd

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We provide news, information on all LPG related services, including construction, prices and repairs. Our goal and mission is to make LPG gas available and accessible to every household in Nigeria.

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