LPG Gas Plant Business: Costs, Types, Licence and Setup in Nigeria
Starting an LPG (cooking gas) plant business in Nigeria can be simple and profitable if you follow the right process. We explained how to set up your business, especially focusing on skid-mounted LPG plants, which are popular in the country.
LPG is widely used in Nigeria for cooking, especially in various states in the country, and even local areas such as villages. The demand is growing as more people switch from firewood, charcoal and kerosene to gas. Setting up a gas plant in these locations to help meet this demand can generate good income for you.
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3 Types of LPG Businesses You Can Start in Nigeria
- Small Skid Plants: These are complete setup gas plants with refill machines, small tanks, and space for a few gas cylinders. They are affordable and suitable for beginners. Mostly 1.5tons, 3.5tons, 2.5tons and 5tons complete setup skid.
- Standard Skid Plants: These have larger storage tanks (up to 10,000 liters) and serve more customers, including retailers.
- Large Gas Plants: These are big facilities with very large tanks and more equipment. They supply gas in bulk to smaller retailers and businesses.
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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How To Decide Your Budgeting and Size For LPG Gas Plant Business
- Small Skid Plant (1,000-2,500 liters): Costs between ₦7 million and ₦12 million. Ideal for small neighborhoods.
- Medium Skid Plant (5,000 liters): Costs between ₦15 million and ₦25 million. Serves larger communities.
- Large Skid Plant (10,000 liters): Costs ₦30 million and above. Best for commercial areas with high demand.
READ MORE: Is Starting a Gas Refill Business In a Good Idea for New Business Owners?
Location Is The Key
Listen, this probably could be the best advice you can get when starting up LPG gas plant business in Nigeria. Before you setup your cooking gas business, conduct a market survey. Visit local gas sellers and study the demand in that area. Ask questions about prices, customer preferences, and regulations. This will help you understand what works best in that location.
Choose a good location. Pick a busy area where many people use cooking gas. Avoid areas with existing gas plants to reduce competition. The location must also meet government safety standards.
Get Proper Training
LPG is highly flammable, so safety is very important. Learn how to handle and refill gas safely. You can get training from other gas plant operators or attend a certified course.
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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Get The Right Equipment
For a skid-mounted LPG gas plant, you’ll need:
- A skid-mounted tank (storage tank and refilling system combined)
- Gas cylinders (not necessary)
- Weighing scales
- Fire extinguishers and safety gear
Get Licenses and Permits
To start an LPG business in Nigeria, you need:
- DPR (Department of Petroleum Resources) license
- Fire safety approval
- Local government permits
Find a Reliable Gas Supplier
Partner with a trusted distributor who offers affordable and quality gas. Build a good relationship and have always a consistent supply.
READ MORE: How Much Does It Cost to Start a Cooking Gas Retail Refill Business in 2025?
Once you followed due diligence and process, you can now start selling and promote your business. Once your plant is ready, start refilling and selling gas to customers. Offer competitive prices and discounts to attract more buyers. Use flyers, banners, and social media to advertise your business.
Final Tips for Success
- Always put safety first. Make sure any source of ignition is far from the surroundings around LPG gas plant.
- Hire experienced workers to help with refilling and customer service.
- Monitor the market and adjust your prices as needed.
Starting an LPG skid plant business in Nigeria is a great way to meet the growing demand for cooking gas while earning a steady income.
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!!!
👇 👇