READ MORE: Small Capital, Big Profit: The Secret to Starting a Cooking Gas Business in Nigeria
Let’s break it down in simple terms.
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Types of Cooking Gas Plants
Before we talk about money, you need to know the kind of plant you want to set up.
> Mini Skid Plant (1 – 5 tons): Small plants for local communities, estates, or small towns.
> Medium Plant (10 – 20 tons): For larger towns and cities with higher demand.
> Large Plant (25 tons and above): For industrial supply and big commercial operations.
Main Costs Involved
1. Land/Location
The truth is, the price depends on the city. In Lagos or Abuja, land near highways or residential estates costs more. Expect between ₦3 million – ₦15 million for a good location.
2. Gas Storage Tank
The most important part of the plant.
- 1.5 tons tank: ₦2m – ₦3m
- 2.5 tons tank: ₦4.2m - 5m
- 5 tons tank: ₦8m – ₦13m
- 20 tons tank: ₦40m – ₦55m
3. Dispensing Equipment
We have list such as pumps, meters, filling scales, hoses, and safety kits. This should be between ₦500k – ₦3m depending on plant size.
4. Installation and Construction
Let's not forget the basic labor work, civil works (fencing, concrete base, office, shading). You should budget close to ₦5m – ₦10m depending on size, because price of one bag of cement has skyrocket.
5. Approvals and Licenses
DPR (NMDPRA) license, environmental approval, fire service, local permits. However, this is tricky. I can only give an estimate. Only a professional person that specify in oil and gas licensing can give you a complete list and procedures, including price. Since DPR is a process, it should be around ₦2m – ₦5m, depending on the plant size.
6. Logistics and Working Capital
Hmm, although this is the least things you should worry about for now such staff salaries, and first stock of gas.....you should probably be looking at workmanship and transportation of, for example if what you want is a mini gas skid in form of 1.5tons, 2.5tons, 3.5tons, double 2.5tons making it 5tons and 5tons complete setup. You should plan on how to transport the complete setup skid from area of construction to your location. Let's say, with workmanship and transportation budget 2 million naira, depending on business scale.
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
Estimated Total Cost in 2025 (Brand New From Scratch)
> Mini Plant (1.5 – 5 tons): ₦5m – ₦25m
> Medium Plant (10 – 20 tons): ₦40m – ₦70m
> Large Plant (25 tons and above): ₦110m – ₦250m
Things to Note Before Starting
> Location matters. Remember setting up close to residential areas brings more customers.
> Always consider safety first. Don't not forget that LPG is safe when handled well. Use quality equipment and follow standards.
> With kerosene and diesel more expensive, LPG demand will keep increasing.
> Do not ignore partnership, it helps. Some investors partner with existing plants instead of starting alone.
Yeah, setting up a cooking gas plant in Nigeria in 2025 is capital intensive, but it is also a profitable business because LPG demand keeps growing every year. If you start with the right planning, approvals, and safety measures, you can recover your investment in 2–4 years.
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
READ MORE: How Much Profit Can You Make from Cooking Gas Plant Business in Nigeria?
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