Extra: Today, you will also learn everything you need to know about skid, mini, and standard gas plants
I have always tell many people that starting a gas plant business in Nigeria can be highly profitable due to the country’s rising demand for cooking gas (LPG). However, it depends on location. Location is the key. Location must meet demand and supply. Your potential gas business must be in a strategic place, less or no competition, high demand population and businesses.
But the issue is, setting up a gas plant requires proper planning, licensing, infrastructure, and compliance with government regulations.
So, in this article I have done my best to break down everything you need to know — whether you're starting a skid plant, mini plant, or standard gas plant — including the NMDPRA licensing process and equipment needs.
Company Registration - First Step. The first step is to get your business registered with the Corporate Affairs Commission (CAC).
1. Skid Gas Plant Requirements
What is a Skid Gas Plant?
A skid plant is a complete setup system with LPG tank, dispenser, pipes, motor pump - all connected (constructed) together as one. Skids are suitable for small space or roadside setups. It’s often mounted on a steel platform and requires less space and capital - they are also very easy to transport.
Licensing & Regulatory Requirements For A Skid Plant
• NMDPRA License: Apply to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
• Fire Service Approval from State Fire Service.
• Environmental Impact Assessment (EIA) or Site Inspection Report.
• Town Planning Permit and Land Title Documents.
• DPR-approved consultants may be required for documentation.
Infrastructure & Equipment For A Skid Plant
> 1.5-ton to 5-ton skid unit with tank, pump, dispenser & pipes.
> Fire extinguishers, sand buckets and safety signs.
> Generator or solar backup power.
> Fencing, signboard, and simple office container.
Site Requirements For A Skid Plant
> Minimum of 15 meters from residential buildings.
> Location must be accessible and not obstruct traffic.
> Preferably along highways or in high-demand areas.
> Half a plot or one plot of land measurement is recommended.
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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2. Mini Gas Plant Requirements
What is a Mini Gas Plant?
Mini gas plants serve large demand. It is mostly constructed on ground - pipes running through from one point to another. Mini gas plants are not constructed together unlike the skid plant. For a mini gas plant, the LPG tank is position far from the dispenser - or the customer refilling point. Some LPG tank for mini gas plants are place out of sight.
They are larger than skid units but smaller than full-scale plants, typically using 5-ton to 10-ton LPG storage tanks.
Licensing & Regulatory Requirements For Mini Gas Plant
• NMDPRA Retail Gas Plant License.
• Fire Service Report, Police Report, and Environmental Assessment.
• Survey Plan, Land Use Approval, and Building Plan Approval.
• Permit from Local Authority or LGA.
Infrastructure & Equipment For Mini Gas Plant
> 5–10 ton underground or aboveground LPG tank.
> Gas dispensers (mostly more than one, especially for 10 tons) and weighing scales (optional)
> Perimeter fencing, security post, mini sales office.
> Installation by licensed engineers.
Site Requirements For Mini Gas Plant
> 20–30 meters setback from residential or commercial buildings.
> Not located between schools, hospitals, or crowded markets.
> Minimum land size: More than 650 sqm.
Bonus Tips
• Secure fire-fighting systems.
• Emergency response plan in place.
• Trained staff and operators certified by NMDPRA.
• Daily monitoring of gas levels and equipment.
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!!!
👇 👇
3. Standard Gas Plant Requirements
What is a Standard Gas Plant?
This is a full-scale LPG plant for major cities or high-traffic areas, handling large volumes with bigger storage tanks (20–50 tons or more). They may also supply smaller retailers or skid plants.
Licensing & Regulatory Requirements For Standard Gas Plant
• NMDPRA License for LPG Bulk Storage & Sales.
• Detailed Engineering Design (DED) and approval from certified consultant.
• EIA Certificate from FMEnv or State Ministry of Environment.
• Land Title, Town Planning Approval, and Building Permit.
• Fire & explosion risk analysis.
Infrastructure & Equipment Standard Gas Plant
• 20–50+ ton LPG tanks (aboveground or underground).
• Fully automated filling plant with multi-point dispensers.
• Truck offloading bay and storage yard.
• Staff offices, training rooms, CCTV & access control systems.
• Weighbridges, bulk pumps, and gas compressors.
Site Requirements Standard Gas Plant
> Minimum 1,000 sqm to 2,000 sqm land area.
> Must be outside densely populated zones.
> Distance of 30–50 meters from the nearest building.
> Easy access for delivery trucks.
Safety Rules
• Mandatory installation of gas leak detection system.
• Fire hydrants, sprinkler systems, and alarms.
• All staff must undergo fire and gas safety training.
• Periodic NMDPRA inspections.
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!!!
👇 👇
Final Checklist to Start Your Gas Plant in Nigeria
Requirement Skid Plant, Mini Plant & Standard Plant
• NMDPRA License - "ok"
• Fire Service Approval - "ok"
• Environmental Assessment Optional - "ok"
• Land Size Needed 1 plot (15m) 2 plots (500sqm) 3–4 plots (1,000–2,000 sqm) - "ok"
• Capital Investment ₦8–15m ₦20–35m ₦40–100m+ - "ok"
• Staff Safety Training - "ok"
• Site Setback from Buildings 15m 20–30m 30–50m - "ok"
With the rising demand for clean energy, LPG remains one of the most lucrative businesses in Nigeria. Make sure you work with registered consultants and engineers to avoid licensing delays or safety issues, or worse - closure.
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!!!
👇 👇