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.
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.