How to Choose the Right Location for Your LPG Plant in Nigeria
Setting up a cooking gas (LPG) plant in Nigeria requires careful planning, not just for profitability, but also for safety and regulatory compliance. Since LPG is a bulky and flammable product, your plant’s location can determine how much profit you make and how easily you get licensed.
1. Choose a Strategic, High-Demand Area
Because LPG transportation is expensive, consumers usually prefer refilling their cylinders close to home. That’s why your best location is within or near residential communities where demand is consistent.
Look for busy areas with strong foot or vehicle traffic, such as main roads, street junctions, or near marketplaces. These zones attract steady customers daily and make it easier for people to locate your plant.
2. Avoid Restricted or Risk-Sensitive Zones
While visibility and traffic are good, safety and regulations come first. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) (formerly DPR) has strict guidelines for LPG plant placement.
You must avoid siting your gas plant near:
- High tension power lines or transformers
- Religious centers (churches, mosques)
- Hospitals or schools
- Event centers or crowded public places
Such areas are considered sensitive zones and can lead to license rejection or site relocation orders during inspection.
3. Meet Minimum Setback & Safety Requirements
To comply with NMDPRA safety regulations, make sure your land meets basic distance (setback) requirements:
- Minimum 15 meters from residential buildings
- Minimum 20 meters from the main road
- Minimum 30 meters from power lines or fuel stations
It’s best to work with a licensed gas consultant to conduct a feasibility and safety site assessment before purchasing or leasing land.
4. Regulatory Steps to Secure Approval
Before construction, you must apply for Site Suitability Approval from NMDPRA. Inspectors will visit the location to confirm it meets safety, environmental, and accessibility standards.
If approved, you’ll proceed to obtain:
- Approval to Construct (ATC)
- License to Operate (LTO)
Each stage requires documentation like your fire safety report, environmental impact statement, and land ownership proof.
My Advice?
Cooking gas business is one business that once you go in, you go in fully and well prepared. No shortcuts or avoiding necessary precautions. Safety is the watch word. Since Lpg gas is known to be high flammable, choose a location that balances visibility, accessibility, and compliance. Don’t prioritize a cheap plot if it violates setback or safety rules, regulators will shut you down eventually. Always involve professionals familiar with NMDPRA’s requirements to avoid costly mistakes.