In the part one of this video, I showed you the basic requirements to setup cooking gas plant. But in this second part, I will be showing you the processes of putting the requirements together into a gas plant.

The Processes

Let’s get to how to put these requirements together into a working cooking gas plant.

– Hire a Consultant

Your first step should be to hire a consultant. The problem with hiring a consultant is not knowing how much to pay. But, you can choose to pay as you need to use a consultant. That way you only pay a consultant to do specific assignments for you.

– Acquire a Suitable Land

The land must meet DPR location requirement for gas plant. It’s advisable to work with your consultant when acquiring a land for gas plant, to guide you on making the best choice. A consultant take between N50,000 to N100,000 for this service.

– Conduct Location Assessment

It’s always in your best interest to consider location assessment of the land for cooking gas plant. Location assessment will look into its Suitability and profitability for a gas plant. This should be done before you even start DPR licensing.

It cost between N100,000 to N200,000 for a location assessment.

– Package an LPG Business Plan with Feasibility Study

Whether you are looking for a loan or not, you need a business plan. You shouldn’t start a cooking gas plant without a clear picture of the profitability in your chosen location.

A professional business plan is packaged with your chosen location LPG market statistics. Don’t buy a copy and paste business plan that’s sold online. They were not packaged for your specific location and cannot give you a clearer insight into the profitability in your location.

Get a consultant to package one for you. LPG business plan cost between N150,000 for 2.5MT and 5MT plant size. But for 10MT and above it’s N300,000.

– Start Government Licensing

You might need to know what it would cost for the different licensing that’s required for LPG plant. Some of the costs listed here may be different in your location. This cost is just as a guide.

• Police report cost around N20,000 to N50,000
• Fire service approval is around N50,000 to N100,000
• Tax clearance certificate cost N50,000
• DPR approvals is between N2 million and N3.5 million

You can apply for all these licensing on you own. But if you need help contact a consultant.

– Purchase or Construct Your LPG Plant

Gas plants are like Manufacturing outfit, even though it’s job is just to store and dispense cooking gas into cylinders. You are either buying an already assembled plant or get a company overseas to construct it.

The only difference between the two option is price. It will probably cost less if you are getting it directly from the manufacturer overseas, as against buying it from a local vendor. You need DPR authority to construct (ATC) approval before you can buy or construct a gas plant.

Your consultant should help you with contacts to companies for any of the options you choose. And there are several companies to pick from.

– Install the Plant and Train Your Staff

After purchasing the plant, it would need to be installed in your approved location. Note that until you get DPR approval you cannot start installation of gas plant. That would be illegal to do so without approval.

You will also need an engineer to install the plant for you. If your consultant is also an engineer that’s a plus for your project. It means all the expertise is with you already. Installation can cost between N1.5 million to N3 million. Some plants are turnkey or plug’N’play. And doesn’t require installation.

– Start Selling LPG for Profit

Finally, its time to start selling cooking gas. Remember to conduct successful testing, and train your workers. This is the easiest part of the business, when you are counting money from the sales.

You can reach me by phone/text/WhatsApp Number: 07087770518 for more information. And subscribe to MyBlog TV YouTube channel.

I’m going to share with you the simple steps you need to setup  cooking gas refill plant. Cooking gas is as the name implies, is a gas for cooking. A gas refill plant is similar to a petrol station. But first, let’s look at the Financials.

– How Profitable To Setup Cooking Gas Plant?

Let’s start by exposing the profit potential of cooking gas business. Cooking gas is sold with a wide margin of between N60 to N100 markup. If you sell 30,000 kilogram per month, you make between N1.8 million and N3 million.

Now, I want to show you how to setup the business and start refilling cooking gas. I have broken it into two major parts:

1. The Basic Requirements
2. The Processes

– Basic requirements

If you want to startup this kind of business, you need to understand the basic requirements. I will explain it one by one.

– Startup Capital

The number one requirement is capital. You will need capital and lots of it. It’s not the kind of business you are asking, can one million or two set it up for me? This is not that kind of cheap setup businesses. Wait till I reveal all the other requirements, which your capital is needed to do. It will help you understand the capital requirement better. Let me not quote figures that may discourage you.

– Registered Company

You will need a registered company. In this case, not a business name or enterprise, but a limited liability company, dully registered with Corporate Affairs Commission (CAC), with at least 5 million share capital.

Note: Also ensure that one of the services the company is registered to do is Oil and gas services.

– Land or Petrol Station

You will need a land or a space in a filling station. The minimum required land size is 100 by 100 square feet. And it’s suitable for LPG plants not more than 10 metric tons capacity tank.

If you are starting with above 10 metric tons size plant, you would need up to four plots of land. While setting up inside a petrol station requires a minimum of 1,300 square meters of space, and for a maximum of 5 metric tons plant size.

– Government Approvals

You will need a approvals, and lots of them too. But the most important is DPR approval. DPR issues 3 stages of licenses for gas plant setup. Which are, location approval, authority to construct (ATC) and license to sell.

Other approvals required for processing DPR licensing includes:

• Tax clearance certificate
• Fire services approval
• Police report
• And Town planning

You will also need survey plan and environment assessment report carried out on the location.

– LPG Equipment Partner

You also need an equipment partner. Either a manufacturer (from China, Turkey or Germany) to build the plant for you or a local supplier.

There are different sizes of gas plants, but below are the popular ones:

•  2.5 metric tons plant
•  5 metric tons plant
•  10 metric tons plant
•  20 metric tons plant

The cost starts from N4,000,000 to N30,000,000. Setup cost depends on the size of the plant, the choices of equipment and the accessories.

– LPG Consultant

As a consultant, I won’t skip this part. Although, it’s essential to this business that you have a consultant with you. Unless you are an expert in the oil and gas, if not, you need a consultant. I will explain what the consultant would do for you in the next part of this video, which is in the processes.

You can reach me by phone/text/WhatsApp Number: 07087770518 for more information. And subscribe to our YouTube channel MyBlog TV. Also, ensure you also watch the concluding part of the video in the part of it. It will give you the processes to follow. CLICK HERE NOW TO WHATC PART 2.