Undoubtedly a vast investment potential exists in the domestic liquefied petroleum gas filling sub-sector of the Oil & Gas Industry in Nigeria. A large proportion of the middle and upper socio-economic class of people depend on gas for cooking purposes. So are industries, government establishments, hotels, hospitals, restaurants, bakeries e.t.c
Today, Nigeria consumes about 250, 000MT per annum and we have about 230 LPG refilling plants and 7,000 retailing outlets. More succinctly, a captive market of over 165 million people makes investment in LPG industry viable since one of the challenges the Federal Government as well as LPG operators are forced to grapple with is how to market the use of cooking gas in Nigeria.
With less than one kilogram me per capita consumption, Nigeria ranks among the lowest liquefied petroleum gas consuming states in Africa despite its huge gas resources. It Is currently estimated that only 30% of our population uses LPG as a cooking energy while the remaining 40% uses Kerosene and 30% uses Fire wood.
The current General Manager of the NNPC and the Minster of state for petroleum Mr Ibe Kachiukwu has stated on various occasssion that in 2016, the use of LPG would be enforced. He also stated that free LPG cylinders would be given to all Nigerians. The budget for 2016 does not include subsidy for kerosene. It Is therefore evident that the use and demand of LPG would double in 2016 and now is the right time to make investments in the sector.
LPG cylinders refilling plants would be needed to bring closer gas to the consumers and retailers. We manufacture Mini LPG cylinder refilling plants here in Nigeria. This plants are mobile and easy to operate. This type of refilling plants requires very small piece of land/space and they can be easily relocated to a more profitable location. The plants also have over 20years operating life span.
Information reaching us is that the NNPC would be broken down into 30new independent Companies & CEOs and one would be dedicated soley to the LPG sector. This would further buttress the statement made in December 2015 by the The minister of state for petroleum resources and group managing director of the Nigerian National Petroleum Corporation (NNPC), Ibe Kachikwu that the NNPC would further deepen the use of LPG in Nigeria and also roll out free cylinders to every home in Nigeria.
Cost of the mini plants varies depending on the tank size and design.
Our most Affordable plants cost :
Pneumatic System 2.5ton mini plant: N5 million 5ton mini plant: N7.6 million
Electronic System 2.5tons mini plant: N7.6 million 5tons mini plant: N10 million
The minimum land requirement to setup this LPG facility is 1 plot of Land. To decide on the best location to setup your mini refilling plant facility, consider a highly populated residential areas. Being a bulky product, transportation of cooking gas can be costly and cumbersome. Many consumers would prefer buying gas in their locality therefore, locate your business in a place not too far from residential areas. Having determined the demand for cooking gas in the area, decide on the best location within the place for your business. Your ideal location will be an area with high traffic such as a busy road, street or street junction close to a market place.
With speed, we assist in helping you procure all required documentations and licences involved in building or upgrading an LPG facility and working with Lagos State Ministry of Energy and Minerals though the EKO GAS Scheme initiative, we would secure all required permit for your facility to operate.
Some of the permits includes
Town Planning Police Report Fire Service Report Environmental Impact Assessment report Department of Petroleum Resources (DPR)
A business feasibility repeort is a must have before starting this buisness. The report would guide your business to profitability. For those that do not have the money now to start up, the plan is a must have when seeking for a loan from any bank in Nigeria or attract investors.
our business plan comes with a 3years financial forecasts which includes viability analysis, Cash flow, profit and Loss, Operational plan etc. it is professionally written plan that would guide you on how to grow and manage your business. We also give free market research analysis alongside the feasibility report on cities Lagos, Abuja, Kano, Owerri, Warri, Porharcourt, Benin & ibadan.
With professionalism, our expert construction and installation service by our certified technicians has the resources to assist you in building or upgrading your facility to meet international standards with a very trendy and welcoming look. Our trendy plants/Facilities gives best value for your customers. Providing a trendy LPG facility enhances a convenient one-stop shopping experience for your customers. It also increases store traffic and cross-sell opportunities adding to more profits for you! We provide and install best equipment sourced from reputable international companies. Our equipment are also SON approved and also meet international standards. With speed and accuracy, we build and deliver your facility at the expected handover date.
SarGas Energy® Logistics has one of the largest combined Supply and Transportation network in the industry with our Bobtails & Bridger, Refrigerated Vessels strategically placed throughout Nigeria which is traced and routed using satellite communication systems. We provide our clients with world class Logistics services to meet their needs in a timely manner. We would supply all our clients with LPG. Just place your order.
Once you purchase of our plants it comes with:
×××× metric tonnes tank Corken Fire proof pump Manuel or Automatic filling systems Weighing scale and pressure gauge Return Hose Fire extinguisher Safety goggles, boots and overall Branding HSE training Free Haulage anywhere in Nigeria
80 (12.5kg) cylinders makes 1ton of gas
So a 2.5ton skid plant is 200 (12.5kg) cylinder
Cost off filling a 2.5ton plant is usually between N350-400k (including logistics) operational cost (which includes a generator, staff, etc) is N60, 000 monthly Cost of 12.5kg cylinder is N3000
Sales cost: N3000×200= N600,000
N200,000-N60,000= N150, 000
Profit: N140, 000/2.5tons of gas
NOTE: 2.5tons of gas can be sold daily with a good Location, business model and marketing strategy
Easy to maintain and manage
Very low operational cost
Location of plant can be changed/relocated at will
Gives value for money and highly profitable
Small portion of land/space needed
Plants can be located closer to LPG consumers unlike stationary LPG
Hurry and Let's help you build a viable & profitable LPG business in any value chain sector you decide to invest.
To download our product catalogue and a guide on "How To Startup Your Business" click here to download
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