Mini Cooking Gas Plant Setup Guaranteed! (10 FREE Lessons)

How to Setup Mini Cooking Gas Plant

Do you want to start a mini cooking gas plant? I have put together a simple mini-lessons that will show you all the processes and requirements needed to start it anywhere in Nigeria.

These lessons are free and very valuable. It’s authored and packaged by Chinedu David, a seasoned consultant and business strategist.

The lessons comprise of 11 broken down modules for easy learning. You can find the link to each lesson arranged in their order by the left-hand side of this page. They are labelled lessons one to eleven.

And in each lesson is contained WhatsApp link to help you ask questions and get valuable feedback should you want clarity from any of the topics. In case the URL link didn’t work, the WhatsApp number is 07087770518. I will always attend to your questions quickly.

See the list of the topics in this lesson pack:

Lesson One: Starting Mini Cooking Gas Plant Business – The First Step Lesson
Lesson Two: Understanding Mini Cooking Gas Plant Business
Lesson Three: Mini Cooking Gas Plant Feasibility Report & Business Plan
Lesson Four: Choosing Location For Mini Cooking Gas Plant
Lesson Five: Mini Cooking Gas Plant Setup & Approval Requirements (Part 1)
Lesson Six: Mini Cooking Gas Plant Setup & Approval Requirements (Part 2)
Lesson Seven: Mini Cooking Gas Plant Setup & Approval Requirements (Part 3)
Lesson Eight: Mini Cooking Gas Plant Supply Chain
Lesson Nine: Mini Cooking Gas Plant Marketing Ideas
Lesson Ten: Mini Cooking Gas Plant (ROI) Estimation
Final Lesson: Mini Cooking Gas Plant Funding Ideas
Conclusion: Technical Partners & Hiring Me For Consulting Services

Note: I’m always available on phone, chat and email. Here are my phone/WhatsApp numbers: 08139006120 and 07087770518. Email: chinedudavid@gmail.com or nedu@myblog.com.ng

P.S: Take advantage of my visiting services. It’s the cheapest I’m offering, and it’s for a reason. For those who can’t afford most of my services, a visit to your location can help you a great deal. I know you will like to come to see me. But I would instead you invite me. This business is location-based, and I want to be useful to you. If I go to you, I will help you make some decisions about your location because I will take a tour around and make my contributions. But if you visit me, we will just take the same theory I would have given you on WhatsApp or phone call. I know my fees are stated for this. But if you look at it very well, you might spend the same amount to come to visit me, and it won’t be of much profit to you. My mission is to help, and I hope you take advantage of when it’s available for you.

Mini cooking gas plant

Starting Mini Cooking Gas Plant Business – The First Step Lesson

If you are new in the cooking gas business, don’t rush until you understand the cost implications. Anyone would want to join a lucrative business when you see one, but do you know what it can cost you?

Although I will still explain the vast potentials of cooking gas business in another day lesson, I want you to be prepared first before you even know what you are ready for.

Although there is no particular startup cost for cooking gas plant business, it’s not that cheap either. There are only different levels you can startup from. For example, there is the mini, medium and the primary cooking gas plant startup levels.

And each level has a different setup cost. And I will also be teaching you how you can start up this business now with my help if you are ready to invest immediately.

However, I will also like to inform you ahead not to play too smart or know it all. It can lead you into the wrong hands. And if you are being offered prices that are too good to be true, then pause because it could be a fraud. But you can also let me help you from beginning till setup of your cooking gas business. I will just charge you some little change to cover for my time. It’s safer for you that falling into the wrong hands.

Cooking gas plant business has different tank sizes. It’s measured in metric tonnes (MT), but the retail gas is mostly sold in kilogram (KG). 1 kg is the same with 1 litre. Everyone buys fuel in litres. So you will understand that better.

Mini Cooking Gas Tank Sizes

These tank Sizes are 0.5MT, 1MT, 1.5MT, 2MT, 2.5MT, 5MT, 6MT, 10MT, 15MT and 20MT. The tank size also determines the cost of setup for you. And there are different tank prices even of the same tank size in the market. There are factors responsible for it as well.

Also, there are both new and used tanks in the market. The prices are also different. While it’s advised to buy new gas tanks, that doesn’t mean used ones are not good as well. The used tank can last longer than the new ones. But you have to know that business is all a risk. Yous should choose your risk well.

But I’m not going to give you any specific prices for the tanks, but I will be giving you price ranges for setup with specific tank sizes. Also, I will exclude the less popular tank sizes from this pricing.

1MT tank setup cost ranges from N1.8million to N2.5million
1.5MT tank setup cost ranges from N2.8million to N4.2Million
2.5MT tank setup cost ranges from N3.6million to N6.5million
5MT tank setup cost ranges from N6.5million to N9.5million
10MT tank setup cost ranges from N11.8million to N19million

Moreover, some tanks are sold with all the required accessories for installation and dispensing machine. While some are not. And If your request including more than one dispensing unit it attracts extra cost as well.

You also need to know that the dispensing units come in different types. There is the pneumatic system, and there is also the electronic system. Each variety adds to the cost differently. However, those smaller tanks usually come with pneumatic functions and not electronics.

Note: Watch out for another lesson. If you have any question, please feel free to ask. Also, join our exclusive WhatsApp group to learn more. Next lesson will only be planted in the WhatsApp group.

Follow this link to join my WhatsApp group: https://chat.whatsapp.com/BPXI3ZUa3yD8nwRXHp9uY6

Mini cooking gas plant

Understanding Mini Cooking Gas Plant Business

In the first lesson, we learned about the cost estimate for buying a cooking gas tank. Although, we didn’t look into all the cost implication. We will address other costs in another lesson. But today’s lesson is about what makes cooking gas business worth investing.

Right now, cooking gas plant is the hottest business you can invest your money even as the country is in recession. No matter how hard things would be, people must cook their food before they eat it. And right now, cooking with gas is the cheapest option.

A bundle of firewood in my village is N300. A little of kerosene is N350. Also, 1 KG of cooking gas is N350. Let’s assume that they are all equal. Although a litre of kerosene is the same quantity as 1 KG of cooking gas. It’s the firewood we would just assume.

For a family of four, the firewood and the kerosene would probably end in one cooking. But the 1 KG of cooking gas could last up to 4 days. A bachelor can consume as low as N50 cooking gas per day. So, the 1 KG gas could last for as much as 1 week. (This is an estimate and may not apply for everyone). But that makes cooking gas a cheaper option. And in the future, the price would drop further.

Why you should invest in a mini cooking gas plant:

1. Cooking gas plants enjoys some form of monopoly. You can be the only one in a particular location. And it’s not because nobody can open another one, but the Directorate of Petroleum Resources (DPR) may not give approval if the area is not suitable to have more than one gas plant.
2. It has a massive return on investment. I just gave you how much 1 KG of cooking gas is sold. It should give you an idea of how much profit to be made. A litre of fuel is sold at the official rate of N145/liter. Cooking gas is also sold officially at a similar price but not as retail. The vast profit is because it requires customised gas tanks to store cooking gas and dispense to buyers. So you make more profit off the cost of purchase.
3. Untapped demand for cooking gas. The current usages of cooking gas in the country are about 35% of the expected demand. That means about 65% potential of the market is untapped. Your investment in a mini cooking gas plant will keep growing in years to come.
4. You know the Nigeria syndrome. Once a business is lucrative, many would jump into it. Personally, I’m consulting for some Nigerians in the diaspora who want to set up large cooking gas plants in the southeast. The opportunity is not a secret anyone. So, who comes first would position themselves and take the market. And as time goes on the government may stop new plants for setting up for fear of explosion.
5. Opportunity to start small. The mini cooking gas business has the opportunity for small starters who can invest little and grow the business over time. With mini gas plant tanks of 1.5MT and 2.5MT, you can start your own mini cooking gas plant on a small scale.

Also, the operational cost for cooking gas plan is equally low. Mini gas plants can even be operated by just one person or a maximum of two persons. Even big cooking gas plants don’t require too many hands to run. Your overhead is very low, but your profit margin is very high.

We always recommend you hire a consultant to guide you in the best way to start a cooking gas plant profitably. Most Nigerians don’t know the value of paying for someone else experience. It gives you a short cut to success and saves you the money you would have spent in trial and error.

Note: we have the following cooking gas tanks for sale:

1. 2.5MT for N3.2 million
2. 5MT for N7.5 million
3. 10MT for N16.8 million

If you want to become our agent in your state, we give 1.5% of the value as Commission for customers you direct to us.

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Mini Cooking Gas Plant Feasibility Report & Business Plan

Today’s lesson is about planning. And in starting a mini cooking gas plant, you will need a professional conducted feasibility report and a business plan. This is the mistake most Nigerians make when starting a business.

But don’t make this mistake for cooking gas plant. In another lesson, you will learn about choosing the right location. But believe me, it’s not as simple as you may think. For those in Lagos, this may seem simple, but it’s not. In the early days of cooking gas plant business, many gas plants sprung up along Igando road like mushroom Centers.

Today, many of them are a wasted investment. When it comes to location, it’s not something to assume. You must be right about your site. That is why it’s better to conduct a feasibility study on that location.

With a feasibility report, you stand a better chance of being successful than someone who didn’t conduct a feasibility study. Your study can also indicate that your location is not profitable. That way, you have a choice to look for another place.

No matter how much you invest in cooking gas plant, the choice of location can make someone with a 1 MT plant more successful than someone who had a 20MT plant. It’s not the size of the gas plant that matters but your location.

That is why it’s advised to conduct a feasibility report. I always advise my clients like this, what is safer, to lose 250k or to 5 million? A feasibility report is not 250k. It can depend on the size of the project you want to invest in.

The right feasibility study must look into the size of the plant you intend to set up in that location. There is Plant size that can be profitable in an area, while some sizes cannot. So, if I’m the one hired to conduct the study, my fee is usually based on the size of the cooking gas plant.

That also means that I consider only what could make that size of plant successful in that location. And if the size you asked for is not suitable, I might advise against it with an appropriate option.

The crucial part of a feasibility report is the sales potential of your location. The number of cooking gas KGs you can make a sale in a week or month. There are potential location reports that are considered in the feasibility report that you can’t identify on your own because you may not understand what to look at for.

It’s not just about how densely populated the area is. Some density populated areas don’t buy cooking gas. We all know that. But hiring a consultant to do that for you would save you from wrong investment.

Finally On This Lesson

A business feasibility report is a must-have if you must succeed and make a fortune in this business. The feasibility report is a working intelligence document that will help you keep in touch with realities on the ground and help you make decisions that would guide your business to profitability.

A Mini Cooking Gas Plant Plan includes:

Business Overview
Marketing Plan
Production Plan
Organisational and Management Plan
Financial Plan
Risk Analysis and SWOT analysis
Quarterly business intelligent update

For those that do not have the money now to start up, the plan is a must have when seeking a loan from any bank in Nigeria or attract investors.

Note: Feel free to ask any question. Use this WhatsApp link to join our interactive group and get answers to your questions.

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Choosing Location For Mini Cooking Gas Plant

Today’s lesson is vital. It’s what determines the success of the business. Whether you invested 100 million or 5 million doesn’t matter if the location is terrible. That is why, as a beginner, this must be the first important decision you make, once you are convinced that you want to set up a cooking gas plant and you have the capital.

Although location is essential in every business, it’s more important in cooking gas plant. And functional areas are not easy to come by.

It’s essential you start checking out all the locations around you and coming up with the best possible areas for your cooking gas plant. But like I advised in lesson 3, always get your feasibility study conducted on that area as well. Don’t just assume you were right about the location. Let professionals conduct their own research as well.

Two Types of Locations:

Cooking gas plant locations are divided into two. We have a residential and commercial neighbourhood. Even though residential is ideal for the business, some business location can be more profitable.

However, the target customers in a commercial location most often buy directly from gas suppliers if they are big consumers. Business customers like fast food restaurants have mini cooking gas tanks installed in their premises. Some have 1MT or 1.5MT depending on their weekly consumption level.

So, while you may want to locate in a commercial location, do your research thoroughly. But the residential neighbourhood is usually the best location for cooking gas plant. A residential area is the main target for your mini cooking gas plant.

However, the Directorate of Petroleum Resources (DPR) prohibits locations that are near schools, Church, or where too many people gather together. That is why most cooking gas plants are setup outskirt of town.

Also, the plant size can affect the kind of location as well. If you are planning for tank sizes like 5MT, 10MT or 20MT, it cannot be allowed too close to even residential. You would require to set up in an environment that would be considered safe for the people.

But if you plan to setup 1.5MT or 2.5MT, this size is possible within a living environment. But you need to get proper approvals from DPR, fire service Department in your state, and a report from police before setting up in any location. We will learn about all these approvals and requirements in another lesson.

The Right Locations:

Here is how to find the right location for your cooking gas plant. It’s almost impossible to make mistakes if you go this route but always get a piece of professional advice to be safe.

As we already said, the best location is residential. So, the city centre is the number one spot for a cooking gas plant. But how many city centres have space for such a service? Another location that is the most suitable markets. There is also a problem with space availability around markets.

You should know already that cooking gas plant is coming late in our developmental process. So it’s suffering as a latecomer. And even if you find available lands in these locations, they will be costly.

However, you can take advantage of petrol stations. Most petrol stations are located within city Centre’s and where people come regularly. A busy petrol station within the city centre is an excellent spot to set up your mini cooking gas plant. You can arrange to rent a space in a station for a small fee of yearly rent. The cost would depend on your city.

But I will also show you the disadvantage. The owner might evict you once your plant becomes successful and set up by himself. Although, doing a long lease might help avoid this, but that’s as long as your rental lasts.

Another option is to look for empty land around residential areas within the city. Be sure that a petrol station was approved in that area to be sure it’s not blacklisted from flammable products. Also, checking with DPR in your state can help before buying the land or leasing it.

But if you can afford it, buy up a petrol station within a good location and convert part of the space for cooking gas. There may be a petrol station that the owners may be struggling to operate and may want to sell.

Petrol stations have some advantage of setting up a mini cooking gas plant. They already have approvals for petrol, it will cost less to get add-on DPR approvals for mini cooking gas. You won’t need to do fire service approvals and police report in some cases. It’s probably done when the station was first set up.

The reason for a suitable location is for gas sales. According to cooking gas experts, a right cooking gas plant is a location that can guarantee at least a transaction of 200 cylinders of 12.5kG weekly. That’s like 800 cylinders a month. 200 bottles of 12.5KG are equivalent of 2,500KG of cooking gas weekly.

But this target would require a location with at least 500 gas consuming families. Assuming each house contains 4 families, you would need to have a coverage of 125 apartments with your gas plant. The more homes within your coverage, the better for your location. These are houses that consider your mini cooking gas plant nearer to them than your competitors.

Note: land cost and space rental differ from city to city and place to place. You need to verify what’s applicable in your location. If you have any question, please be free to ask. For those who just joined, you can request for the lesson 1,2 & 3.

Cooking Gas

Mini Cooking Gas Plant Setup & Approval Requirements (Part 1)

This particular lesson is in three parts. It’s so lengthy, I had to break it into three pieces. So, this one will be part 1 and lesson 5. The next section will be part 2 and lesson 6. While the last one in this lesson will be part 3 and lesson 7. Each article deals with a separate issue. Like this, one dealt with setup requirements. The next section deals with approval requirements. And the last part deals with the scope of work.

Here you will learn about setting up a cooking gas plant, what you need.

Land Requirement:

The minimum land requirement to setup this LPG facility is 1 plot of Land and 2 plots if setting up 10tons and above. To decide on the best location to set up your mini refilling plant facility, consider a highly populated residential area of the middle class. GRAs are an excellent location for the mini cooking gas plant.

Since it’s a bulky product, transportation of cooking gas can be costly and cumbersome. Many consumers would prefer buying gas from a close by the mini cooking gas plant. You should 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 cooking gas plant location will be an area with high traffic such as a busy road, street or street junction close to a market place, but always endeavour to avoid lands with high-tension poles or school vicinity as this could pose a massive problem during licensing by officials from Department of Petroleum Resources.

Setup Requirements:

Some of the items included here may be an option. Some are just for safety purposes. The possibilities are due to the tank type purchased. Brand new tanks usually come with come accessories. I included all these here to give you an idea of some of them. I also didn’t provide many details about some items listed here because there is nothing to explain further about them.

1. (Number) metric tonnes tank: LPG tanks are in different sizes. There are used tanks for sale and new gas tanks as well. There are also complete turnkey solutions, which are tanks already set up to perform gas dispensing function. All that is needed is to Transport to location and install. This kind of setup also hastens DOR approvals and reduces bottlenecks and delays.

2. LPG fire proof Pump

3. Filling heads: this is a pneumatic option. You can go to an automatic dispenser. Although it’s costlier, it’s better and ensures accuracy of gas dispensed and eliminating loses. You can only dispense gas amount keyed into the machine for sale.

4. Weighing scale: the weighing scale I required mostly for the pneumatic system. But you should have one in place even if you operate an automatic dispenser. Sometimes clients might drop off their cylinder to pick it up later. You should weigh it before they pick it to prevent complains that it’s was filled correctly.

5. Pressure gauge
6. Return Hose
7. 2 fire extinguisher
8. 2 safety Overalls
9. 2 safety boots
10. 2 safety gloves
11. 2 safety goggles
13. Safety caution signages

14. Training on how to manage the plant. If you use a reputable company for your setup, the cost of training is inclusive in your total cost of tank and setup. However, you can also use the services of a gas consultant to train your initial staff and your self on the rudiments of a gas plant.

15. Delivery to your location anywhere in Nigeria. Because most of the tanks are sold in Lagos, you would require delivery for them. It’s advised that you take along with you an expert when you want to buy gas tanks. It will save you both cost and future problems. You can discuss with a consultant on your budget and let him advise you on what’s suitable. Don’t make purchasing decisions like this without professional guidance.

Note: There are professional inputs required in purchasing a gas tank. Don’t take vital decisions in this business without consulting an expert. I know in Nigeria, we are used to asking a friend or someone we know. Their advice is based on their level of experience. What does that friend know about cooking gas plant? Don’t risk your investment on the help of a friend. It’s more dangerous when you are purchasing a used cooking gas tank. Let an expert guide you.

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Mini Cooking Gas Plant Setup & Approval Requirements (Part 2)

Today we are dealing with the second part of setup requirements and approvals. The first part dealt with setup requirements. This second part will be about approval requirements. It can take a while before cooking gas plant approval is granted by DPR. But know that there are no exact time for it. It can be fast for one person and slow for another. But you certainly require DPR approval before you can operate a cooking gas plant of any size.

The requirements may defer based on plant size, location and DPR state office. Some state DPR may have slightly different interest in what they require for approval. You need to get your own state DPR requirement. What I’m sharing with you here is just an idea of what is required. It may be less or even more in some state DPR offices.

Also, note that what is approved is the location. Any change in the area also invalidates the DPR approvals and would not apply for your new site. You will need new DPR approval for each location. So, it’s advised that you do a feasibility report first before going for DPR approvals for your area.

Approval Requirements:

The body in charge of regulatory function for oil and gas is Directorate of Petroleum Resources (DPR). They have offices in every state capital. They are not just regulating cooking gas, they are also in charge of petrol stations.

The problem with DPR is that they don’t have unified processes in all their state offices, even though it’s a federal parastatal. Approvals are slightly different for each DPR office. That’s why you have to check with the DPR office in your state to know what their own requirements would be.

However, even the process is not direct. The agency operates in an agent style. So you can’t also deal with DPR directly. You have to use an agent. It’s annoying, but that’s the way it works. And the agents make money off you with their sub-charges. Every payment is billed with charges for the agent too.

Here are some of the requirements for approvals and those you can handle yourself.

1) Three copies of an approved surveyor building plan. This applies to lands. You get a surveyor or visit the state office for the land registry to conduct a survey on the land and register it. The reason for this plan is to ensure the land is sizable enough for a cooking gas plant. DPR has a land size requirement for a plant. By plot, you would need at least 2 plots. However, the required measurement is 100 by 100 meters of land size. However, you should know that for mini plant less might be required. But it would depend on your state DPR. Some people are just unreasonable to deal with. You have to put that into consideration.

2) Three copies of piping and instrumentation diagrams (P & ID) of the proposed gas plant. You might need the DPR agent for this one. If you are using a brand new turnkey gas tank, this will be easier. It should come with piping and instructional diagrams.

3) Fire services certificate. You will need a fire service to certify the location fit for a gas plant. They will access the environmental impact of the plant and certify if the location is suitable for a gas plant. DPR agents charge the same rate with the police report, but you can also do this yourself. Every state capital has a fire service station.

4) Police report certificate. You can get this from any police station, at least from a rank of a DPO is okay to sign such approval. The price depends on what the DPO chooses to accept from you. It doesn’t have a fixed amount. DPR agents can charge as much as 150k to procure this for you. It’s better you get it yourself and negotiate what you can afford with the Divisional Police Officer with jurisdiction over your location.

5) Certificate of incorporation. You are required by law to register your business entity before applying for DPR certification. Although the emphasis is placed on limited liability companies, I haven’t verified yet if an enterprise company can also apply. Better you register as a limited Company for this to avoid unnecessary delays with DPR.

6) Articles and memorandum: you should have this done when you registered your company. Just make a copy and submit with your application.

7) Remita payment of 50k for ATC: I’m not aware if this is a standard requirement for all DPR applications. It might be true. But when you make an enquiry in your state, you will get to know what applies to you from here and what doesn’t.

8) Tax clearance certificate: You will need a tax clearance certificate. You can obtain this yourself from FIRS of your state. Or you can get a tax consultant to handle for you. DPR agents can help, as well. But they can demand as much 50k for this. Just deal with whichever option that is cheaper for you.

9) Safety Health Environment (SHE): this assessment is supposed to be from fire service. But DPR agents usually ask for 150k for this. Discuss this with the fire service station in your state and confirm if it includes in your certificate, they will issue you. It would save you 150k. Believe it should be included, but these DPR agents can duplicate functions just to extort money from people.

10) Standard operating procedure (SOP): this one I actually don’t understand what the point it’s all about. But just be prepared because it might come up. I think of it as another ploy used by DPR agents to extort people. They can demand around 150k for this. You know like I said early, DPR is operating in a cult manner like international passport licensing office. They all have their contact person outside who acts as their agent. Also, I know if you work with a gas technical partner, like the company that designed your tank, there should provide this as well.

11) Tank data shit: one of the reasons people pay for this is that you should even have bought gas tank before applying for DPR approvals. These approvals are not done expressly. So, you might have to pay DPR for this data sheet. It can cost up to 70k depending on your state office. Some may. It even asks of it or cost it together with the general licensing fee.

12) Environmental impact assessment (EIA): This one is usually done by the DPR team. It’s this assessment that is used for applying to be approved. Some agents can demand up to 600k for it, but really there is no defined DPR fee for it. This assessment shouldn’t even cost a thing. It’s like DPR visiting the site and checking if there is a reason the place shouldn’t be approved. There is no experiment to be conducted. And they are travelling from Abuja to inspect it. They are from your state capital office. But you know in Nigeria everything is an extortion opportunity. Just negotiate if it comes up.

13)Authority to construct: if you noticed we have indirectly dealt with this early as ATC in number 7. ATC is the abbreviation of the Authority to Construct. But DPR agents would tell you that this would cost you 400k. By the time you look at what they are asking you to pay for, you might be discouraged. But going through the right process and getting most of these things that can be handled by you be done on your own would save you a huge cost. So that you can stomach the bills for the ones that only DPR agents can do.

14)Application & License: this final two is actually the real process. All that we have been dealing with early are requirements and DPR extortion machinery. Application and approval can cost up to 900k. But note that everything in DPR is inflated. So always see if you can get it cut down for you by the agents. Negotiate first, let them know you are not new in this business, and jokingly threaten to give it to another person if he or she is not willing to help you. Everything boils down to friendship and manipulations. The total cost estimate can be almost 2 million. But like I said, the size of the plant can also influence the cost lower.

LPG Operating ADD-ON License:

However, if you set up an LPG plant inside a filling station, you won’t need to pass through all those requirements. Remember that filling stations are also under the regulatory preview of DPR and both are classified as oil and gas. So, a filling station has even already gone through the same process to get approval.

But DPR now demands that you apply for an ADD-ON licence to enable you to operate a cooking gas plant in that filling station. Note that they will still need to inspect the station and certify it okay for your cooking gas plant.

This kind of add-on licence also cost money. The minimum estimated cost is around 300k to obtain DPR licence to operate the mini cooking gas plant in a filling station. However, the maximum tank capacity allowed in the filling station is 5MT. But some state DPR only approve 2.5MT and can allow you to install a maximum of two, still making it 5MT.

Note that the significant costs are considered for cooking gas plant set up on empty land. This is where you have your homework to do. Go to your state DPR office and make enquiries. You need to have your own verified requirements before proceeding further in this business. The first 10 students to get the approval requirements from their state DPR office will get a free phone consultation with me. And I will also help in the procurement of their tank when they are ready. (This one is optional). You have to request me to help, I will not ask for it myself.

Finally, one of the reasons I always advise that you conduct a feasibility study before choosing a location and getting DPR approvals is because approvals are given on the area. If you later find out that the place is wrong for your business, it means all that money spent on DPR approval is wasted, and you have to pay for approvals again for a new location.

Feel free to ask any question about this lesson.

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Cooking Gas Plant Setup & Approval Requirements (Part 3) – Lesson 7

This 3rd part of our 3-in-1 lesson deals on the installation and scope of work required for set up of a cooking gas plant. The Scope of work will cover the provision of all Gas plant equipment, mechanical and installation services for the Gas plant in compliance with Local and International Standards.

It’s assumed once you want to embark on this kind of project you should hire a consultant and get a technical partner. Using a consultant would help in getting a technical partner for the job. It also ensures that the technical partners provides all the necessary scope of work in the contract.

For example, if you are buying a cooking gas tank, a technical company handles the installation and sometimes the transportation to the site as well. And depending on the purchase agreement, some technical companies include installation as a free cost to client. For those that don’t include installation, that means you have to pay additional cost for installation. This cost can be between 600k to over 1 million.

Using a consultant ensures that you get all the benefits of the package by ensuring that the technical partner hired for the project delivers on all fronts. And saves you much need cost.

So, we are taking this scope of work in two parts. One is the part to be handled by your gas technical partners and the ones to be your responsibility.

Scope of Work for Technical Partners:

There are things to done done by the technical partners during the installation. And these are routine process. They should be part of the partnership or job description of the technical partner and shouldn’t cost you extra money.

1. Pre-Installation work (Site Visitation): depending on your technical partner, they always visit the site for inspection before delivering the tank. It’s ideal to ensure the right environment and work has been done to enable the installation work go smoothly. And if there is anything that needs to be done, the technical partners can also advise and ensure it’s carried out before delivering and installation of the tank.

2. General Piping and pipe fitting work with diagram: this has to be done too before installation. But it’s the job of the installation company to carry out this work. It should be part of the cost associated with either the tank purchase. If the purchase agreement didn’t have free installation, it means you will pay extra for the installation.

3. Supply and Installation of LPG storage Tank and tank fittings: once the piping work is completed, the technical company can now deliver and install the tank and the fittings. It’s also good to use a partner than can deliver the tank for free to save cost of transportation.

4. Complete and Comprehensive General installation and piping work for a standard Gas Plant: that depends on the size and type of tank involved.

5. Post- Installation work: Carry out integrity pressure test of all welded Joints to ascertain welds integrity and hydrostatics pressure testing of installed gas pipelines. It’s the final process to ensure the tank is working properly and that there are no leakages whatsoever.

Scope of Work By Plant Owner:

Please Note that these Scope of work are not include in the work done by the technical partners. That means it’s not included in the free work they are carrying out for you. If you need them to handle those aspects too, you will have to contract them for it as an add-on project.

• Permit from All regulatory agencies: The technical partner won’t help you on any of the regulatory work. It’s your job to get all your approvals to enable them carry out the installation work for the tank at your location.

• Admin Building Office Block: You will need an admin block built for your operation. And it’s not done for you by technical partners. You can use the technical partner if you want to construct a world class admin block for your mini cooking gas plant. Or you can use a building contractor to construct simple admin blocks.

• Bore Hole: this is required in every gas plant. It has to be done before installations are carried out. This is in absence of public water supply.

• Plant electrical installation: the electrical wiring of your plant is also your personal scope of work. If you are using a different person for the electrical works, you will need to align with your technical partner to know where the power points are required.

• Generator and Supply of power to site: You are already aware the power supply is a part of the scope of work for gas plant owner. Most gas plant are powered by 8KVA generator. If you have something higher it’s still better. However, I consider getting an electrician to estimate the total power requirement and consumption for your plant before buying a power generator.

• Perimeter Fencing: this is required to safeguard the premises. It’s equally important if need be to fence around the tank area to avoid unnecessary intrusion. It’s ideal for 2.5MT plants.

• Concrete Paved areas of the site: the surroundings of your gas plant should be paved. Some use chipping stones but it can be uncomfortable and distractive. It’s better to pave with concrete.

• Construction of Plinths for tanks: it’s advisable to set the tank on a plinth to elevate it above ground. And also create a strong base for it.

• Construction of Filling shed. You should build shed around the filling unit. You can make this trendy. This could help create attraction for your customers. Everyone like a beautiful place. It’s also good to build a shed for the tank to keep it from rain and direct sunlight. It can prolong the lifespan of the tank and keep the paint fresh. It helps to reduce corrosion and cost of frequent repainting.

Technical Partner

Due to the nature of cooking gas business, I recommend you work with a technical partner. A technical partner is just a company that handles all the technical details of your project. Instead of just buying a tank and setting up on your own or still paying for installation, the technical partner takes up all the responsibility off you.

It doesn’t cost anything extra than the normal cost you pay for whatever you need. But it transfers the responsibility to the technical partner. They know the project better than you and can help you get the best.

Instead of paying for tanks and still pay for transportation and installation fee, a technical company will handle all of that and save you those cost. The bigger your technical partner the better. That means they have the logistics and experience to do the work without incurring extra cost for you.

A technical partners scope of work includes all that is listed in this article and more. But it doesn’t include land or location search or DPR approvals.

The reason technical partners can save you money is because the major ones are dealing on the tanks. And the want to sell their tanks. Also, they are major suppliers of cooking gas. The sell gas tanks so that they can sell cooking gas. We will talk about cooking gas supply in the next lesson.

So, helping you set up your mini cooking gas plant gives them access to a new customer. That’s why they could provide free installation and transportation.

Note: this is where I advise that you have a technical partner. It’s just a partner that understands the technical aspect of the project since you are just a business man. It helps you focus on what you know while the technical partners ensures that the project is executed with the best local and international standard. A technical partner is not an additional cost. It’s just the company that you signup for your tank and site construction work. You are not paying them extra. They can sometimes provide free transportation of tank to site and free installation if you bought their tank. You will also need them for future maintenance or repairs if there is any problem.

Mini cooking gas plant

How Cooking Gas Supply Chain Works – Lesson 8

The only reason for starting a cooking gas plant is to sell cooking gas. That’s your only product, and the purpose of your investment. No matter what other byproducts of cooking gas sold at your gas plant, they cannot be as Profitable as the cooking gas itself.

Cooking gas is a daily need product. It’s consumed daily and therefore is an essential commodity in every home. There is no home where cooked food are not eaten. Food is required to be cooked and cooking gas is required to heat the food.

If you plan to set up a cooking gas plant, you will need constant cooking gas supply. That’s your main product. The cooking gas plant is just your storage and dispensing unit. Your real product is the cooking gas.

Source of Cooking Gas

Although, the source of cooking gas is from petroleum product, but we are focusing on the sources from where it gets to the cooking gas plants. The major source of the cooking gas we use is the Refineries.

Right now, the refineries in the country are not working optimal. So, let’s assume that cooking gas is supplied from Kaduna, Warri and Port Harcourt refineries.

But that means soon there will be cooking gas supplies coming from Dangote refinery in Lagos, Master Energy refinery in Abia state, another one in Ogun state and probably others being built that I’m not aware of.

Soon, there will be more cooking gas supply in the country than we can possibly consume. The business would grow as demand grows. Imagine when every home in Nigeria uses cooking gas. Your cooking gas plant will be doing ten or twenty times of its estimated target.

The Licensed Cooking Gas Marketers

Even as we have the refineries selling cooking gas, you can’t just buy directly from the refineries. The refineries are approved by law to sell cooking gas in metric tonnes to only the licensed marketers.

And these licensed marketers are supposed to resell to the gas plants. But that is always the case. Nigeria is a market of middle men. Even the licensed marketers prefer selling off their cooking gas to middle men than gas plants.

When they sell to middle men to avoid incurring additional cost of manpower, risk covers, etcetera. They pocket their full profit, including cost of transportation factored into their discount by government and look the other way. That’s how most of the gas prices get inflated through middle men.

It’s also the reason the licensed marketers are not known or what to be known. They don’t advertise and they don’t need customers because the middle men are there to buy off whatever quantity to offer.

Cooking Gas Middlemen

In the cooking gas business there are so many middle men. Sometimes the big names you think control the business are just middlemen. That equally affects the price of cooking gas supplied to gas plants.

Sometimes, you notice in your area that different gas plants sell at different rates. Although, it’s not just the prices, the additional cost of delivering cooking gas impacts on the retail price as well.

It’s only gas plants who can afford to buy in large metric tonnes can outsmart the middlemen and buy directly from the licensed marketers. If you are a startup chances are that you are in the hands of the middlemen. It’s not like it’s all bad. After all, you are buying the quantity your money can afford.

For example, if you have a 2.5MT gas plant, you don’t need to buy 20MT of cooking gas just to buy large volume. That would be foolishness. You only buy what you need when you need it. Also, due to limited storage space, even if you have the money to buy 100MT.

Cooking Gas Supply Agents

There is another middlemen called the agents. These ones are the touts in the industry. They are not like the street touts. They only likened to touts because of their role. They usually don’t operate as a company.

The advantage of cooking gas agents is their fast turnaround in supplying you with cooking gas when you need it urgently. They sell to whomever is ready to pay and take delivery.

Most of these agents are cooking gas truck owners. Their primary function is cooking gas distribution. They Make Money from distributing cooking gas. They are small players but they are important in the business.

They also have access to some licensed marketers and most middlemen. They charge for delivering cooking gas to your plant. But if you are ordering cooking gas through them, they bundle the delivery cost as well. The middlemen may charge for delivery separately or ask you to bring your truck to take the product.

Planning Your Cooking Gas Supply

The best way to plan your cooking gas supply is during the setup stage. Some licensed marketers also have their own company setup to handle the middle job done by middlemen. Then their middle companies form their own affiliates to handle cooking gas plant setup and tank manufacturing.

That way they create their own direct markets that buy cooking gas directly from them. They provide a competitive rate for gas plants. But places priority on their network of gas plants.

You can also obtain a middleman licence from licensed marketers and buy directly from them. EkoGas which is one the licensed distributors approves middlemen for their distribution chain.

And these middlemen are also licensed. The fee can be up to N3 million to process it with a licensed marketer.

Gas Plant Set Up With A Supply Company

You can also choose to setup your cooking gas plant using the technical services of a supply chain network. That way you don’t worry about how to get your cooking gas supply. The technical company’s affiliate company will also become your gas supplier.

This option is best for a starter. It excludes you from delays associated with cooking gas supply. And gives you access with a reputable gas supplier.

Cooking Gas Delivery Cost

There is cost associated with the delivery of cooking gas. The truck companies charge for delivery of cooking gas to your plant. The cost of delivery is not fixed. It is based on the location and quantity.

The closer your gas supply company the cheaper the delivery cost. It’s a major cost influencing the price of cooking gas. Also, the trucks are not in large supply. There are limited number of trucks delivering cooking gas in the country.

The network of storage facilities where licensed marketers store their cooking gas is at the advantage of the major cities. The smaller cities don’t have cooking gas storage facilities built there. They depend on the nearest major city to get their supplies.

The popular cooking gas hubs are Warri, Abuja, Lagos, and Port Harcourt. The closer your city is to any of these hubs the cheaper the cost of delivery.

Challenge of Cooking Gas Business

The initial challenge of trying to setup a cooking gas plant is little compared to the issue of cooking gas supplies. Sometimes, the gas truck is far from your location. It can even be that no truck is willing to deliver to your location.

The challenges can affect your sales. You need constant supply of cooking gas. That’s why it’s always advised to setup two tanks of 2.5MT for a mini cooking gas plant, instead of just one 5MT.

It gives you the advantage of refilling one tank while you have stock in another tank to keep up with sales. Your customers needs to know that their will always be available supply of cooking gas.

If you don’t manage your gas supply well, you may lose customers in the process. So you have to plan the following properly from the beginning.

A. Who your initial cooking gas supplier should be
B. The closest storage facility to your cooking gas plant
C. The mode of delivering your cooking gas to your plant
D. How you will manage out of stock

Finally, getting supply of cooking gas to your gas plant shouldn’t be an issue. If you can afford it at the beginning, go for the 2 of the 2.5MT tanks to have a combined 5MT plant. It’s a good way of managing steady cooking gas availability. However, having a reputable cooking gas supply partner can help ensure supply in record time.

success marketing seminar

Mini Cooking Gas Plant Marketing Ideas

Marketing should not be left to chance. it’s not rocket science and doesn’t require too much capital. In this lesson, there are two things I want you to take more serious than everything else. Your location and your marketing.

The right location actually makes your marketing easier. Yet, I don’t want you to rely on the success of your location. Do marketing as though your business defends solely on it. Because the day a competitor comes into your target market, your location won’t be enough to protect your business.

The normal strategy used by most cooking gas plant owners is to setup in a good location and wait for the customers to find them. That’s not marketing strategy, but a wait and see plan.

I’m sharing with you my own strategy that I designed for myself. I may have revealed to you that Im a trained marketer both digitally and locally. I have carried out some of the most effective product insertion in local markets for brands in Nigeria.

In my experience I have noticed that most successful businesses in Nigeria are those that use local marketing strategies, one of which direct marketing is the central point. And I’m going to show you this concept to use for your cooking gas plant business. It works always and in every product or business.

Direct Marketing Strategy:

First, let me discourage the idea of street storm. That’s not marketing. It’s just publicity. It doesn’t generate sales but merely awareness. If sales happen out of street storm, it’s just like bonus. Multinational companies that use street storms knows it’s just for awareness.

The best marketing strategy for your cooking gas is direct marketing or evangelism. You have to plan it properly. You can create a gift voucher to lure your targets. Let me give you the strategy. You will need to hire marketers for this or use your staff.

You will need a well planned direct marketing strategy for your cooking gas plant business. Something that you can repeatedly use to keep attracting new customers and retaining old ones.

It’s not just enough to win new customers, the old ones must be happily retained as well. That’s the best form of marketing, when you keep adding new customers to the existing ones, instead of replacing old ones with new customers.

A well planned direct marketing shouldn’t be costly. But it must be able to generate sales needed without much effort. And by applying and incentivized marketing, both old and new customers are continuously marketed to and retained.

Simple Direct Marketing Plan

Here is a simple idea I drafted just for you. You will need the following to implement this direct marketing plan. The idea of your marketing and what you intend to achieve must be well defined. In this plan, I will advise that the focus would be to identify customers within your target market who already buys cooking. Later you can plan to target those who don’t use cooking gas to increase awareness with your target market.

It’s like a marketing research with the concept of census. You will achieve the following.

A. Identify the number of kitchens within your target area that buys cooking gas
B. You will also discover the actual volume of cooking gas purchased in that area by knowing their cylinder sizes
C. It will give you the financial potential of the target area
D. You will also have the name, address and phone contacts of these target customers
E. You may even collect information about how often they buy cooking gas in a month.
F. And finally, you have the opportunity to inform them about your cooking gas plant business now opened closer to them.

Your Marketing Preparation Plan

A. Design a branded shirt
B. Define your target location by streets. The more closer to your gas plant the better
C. Design a sticker card with relevant information
D. Hire marketers or use existing staff. But you have to train them on the plan and how to carry it out effectively
E. Design a new customer Gift voucher that you can use to attract them as first time customers

You may not even give them any bonus or discount immediately. It may be a special promo voucher that includes them in your new customer promo. You must have a well designed new customer promotion before you can make any offer.

Note: You only target the houses and streets that are closer to your gas plant or have the potential of buying from you in your first marketing plan. Don’t just assume that they would come and buy from you because you are closer. They will, but it might take them months to get use to buying from you. But by this you quicken the process.

Customer Management Strategy:

Winning and managing customers is what your cooking gas plant business should focus on. You must realize that most of your target customers are families. You have to become part of their lives to keep their patronage for a long time.

Don’t underestimate the competition. Any new cooking gas plant business can spring up nearby without notice. And if you haven’t won the customers in your location, you will give the competition advantage to steal the market from you.

You should know that new competition won’t startup smaller than you. They may invest more money, build bigger plant and offer more marketing attractions. But if you have managed your customer base well, human sympathy will make them stay with you, irrespective of what the new competition is offering them.

Remember Birthdays, Anniversaries & Ceremonies

I used to remember when it was only my bank that wishes me happy birthday. That was before Facebook. I still look up to that message even tomorrow. People naturally want to be remembered. If you do this you will win more customers than you can handle.

Also, create small scene at your plant when a buying customer happen to have his or her birthday on a day they came to purchase cooking gas. Take pictures with them. Do somethings that they won’t forget. You should have a backdrop with your brand – a celebrity kind of backdrop and take pictures with them.

They will help you post it online and their close friends who may also live in that neighborhood will want to have the same experience.

I have shared enough marketing secret with you today. You can hire a good marketing consultant to help you launch your cooking gas plant business. The ideas are lovely but it’s the implementation that is key.

Note: I can assure you that your cooking gas plant business will be a success. Don’t do trial and error. Rather than invest huge money and let it go to waste, pay for the services of an expert to help you out. Learn how to utilize other people’s experience n their field to grow your business. The worst businessman is not the one who didn’t invest enough money but the one who didn’t invest enough money in marketing.

success marketing seminar

We are at the end of the lessons. We are in lesson 10. You must have learnt so much already by now. And I believe that it has been of great help to you in your plan to setup your own cooking gas business.

Thank you for giving me audience and learning as I share this lessons. My prayer is that God will supply all your needs according to His riches and glory, to enable you realize your dream of starting a cooking gas plant business.

Today, I just want to guide you on what I shared with you in lesson 9. If you have followed that lesson for your marketing ideas, you would be so sure of your estimated return on investment.

I want to show you how you can recover your investment in 9 months. This estimate is with the least possible outcome. A good cooking gas plant can generate sales of over 800 bottles of 12.5KG cylinder weekly. That’s 10,000KG of cooking gas sales per week. Which is 40,000 KG monthly.

It’s four times my ROI calculation used in my estimate. However, let me give you the actual estimate for a cooking gas plant before I give you the least ROI I’m using for this lesson.

Actual Estimated Revenue Projection:

Weekly Sales Target: 10,000 KG
Monthly Sales Target: 40,000 KG
Minimum Sales Price: N320
Estimated Revenue in 1 Month: N12,800,000
Estimated Revenue in 12 Months: N154,600,000
Estimated Revenue in 5 Years: N768,000,000

But I’m going to use the least possible outcome because we are all operating in different environment and cities. Those in better locations and cities can generate even more than what I’m projecting here.

It’s a profitable investment no doubt. The only challenge I see here is the startup capital. And that’s what has been separating the rich and the poor. The rich will quickly raise the money and invest, making more money and getting more richer. But the poor will discover opportunities like this one but may not be able to fund it.

How Much Is Your Setup Cost:

If you haven’t setup your gas plant as I know many of you haven’t, don’t worry, just use an imaginary number or just use this estimate below. It’s just for training purpose but it will show you how you can calculate yours when you finally setup your plant.

I’m using a Setup Cost of N9.5 million. I’m assuming that what it cost me to setup a 2.5 MT cooking gas plant is 9.5 million naira. That’s my Cost and that’s how much I want to recoup with ROI estimate.

This amount is all I put into the business, that includes setup, approvals, space rental and initial gas filling. I’m not going to include monthly recurrent costs for a reason. This kind of cost may vary from plant to plant. It’s better you do that subtraction on your own to give you a better estimation.

Total Cost Spent: N9.5 million
Amount to Recoup: N9.5 million

What’s Your Sales Target:

Let’s do this maths together. If you never liked maths in school, don’t worry. This one is so simple to follow.

Let’s assume that your daily sales target is 250KG of cooking gas. I prefer to use KG instead of cylinders because consumers come in different cylinder sizes but one thing that is constant is the number of kilograms of gas you sales.

If your target is my target 250KG fine. If not, just wrote down your own daily target. I choose this target because I want to be able to sell 2,500KG of cooking gas weekly and 10,000KG volume monthly. So, decide what your target is and just follow me to estimate my return on investment.

Monthly Sales Target: 10,000 KG
Minimum Price Per KG: N320/KG

My Selling Rate:

Let me assume that I retail 1Kg of cooking gas at N320. That means my daily sales target for 250Kg of cooking gas will be 80,000 daily income in naira. Note that I’m not considering cost of gas and markup. I’m only thinking about recouping my 9.5 million naira investment.

That means in one week, I would have sold 2,500kg cooking gas assuming I’m keeping to my target daily. That 2,500kg sales would be 800,000 weekly income in naira.

So, in one month I would have sold up to 10,000kg of cooking gas. And if I do my maths and multiply 10,000kg by N320 rate per kg, I would have made 3,200,000 income in naira. Note that all this is your Revenue estimate in a month.

Monthly Sales: 10,000KG
Minimum Sales Price: N320/KG
Monthly Revenue: N3.200,000/Month

Finding My ROI:

You have to put into consideration that you may not start making money from the first month you started. In fact, you need to give your plant at least 3 months of less activity and sales. And that’s because you are using the first 3 months to activate your marketing strategies. If not, it an take 6 months or more before you can start earning money from your cooking gas investment.

Note that no one actually know you or trust you. The customers you are targeting already have where they used to buy from. You are considered an obstruction in their way of life. But if you start off with a good marketing plan you can start changing and winning them to your plant in no time.

So, I give you 3 months to do that and start hitting your target. That means after 9 months of setup, you should have 6 months of good sales. So I will use just 6 months out of the first 9 months to estimate the ROI.

We calculated 3,200,000 income monthly. If we multiply that by 6 months, we have 19,200,000 naira. Let’s assume that’s what you got in the first 6 months of starting your cooking gas plant. I don’t know if you can see your ROI of 9.5 million here.

If you take out the 9.5 million from your revenue can what is left cover for the monthly recurrent expenditures in that 9 months? If it does then you have recovered your investment in 9 months of operation. If it doesn’t, you can add additional months until you can cover your cost and take out your cost of setup.

Total Cost of Investment: N9.5 million
Monthly Sales Target: 10,000 KG
Monthly Revenue Target: N3,200,000
9 Months Revenue Projection: N19,200,000

If you add up all your expenditures in 9 months it won’t be up to N10 million. I did not also include revenue from other sources, selling of gas products like cylinders, gas regulators, cooking gas burners, gas hose, etcetera.

First Year ROI Estimate:

1 Month: N3,200,000
12 Months: N38,000,000
Next 5 Years: N192,000,000

Note: now you have to get started. Do everything in your power to get the funds needed to get started. The firs thing to do now is to get a professional prepared business plan, which will include a feasibility study report for your target location, cashflow analysis, total project costing, management proposal, etcetera. The price is 150k. Don’t let the price discourage you. Every house is standing on a foundation. If you ignore the foundation of your business it will surely come crashing one day.

For this week I will be offering all the students who have completed this course a huge discount of 100k. That means if you want to do your business plan this week you will get it for only 50K. It’s for this week only. After this week the price gets back to 150k, with no apologies.

Do it now to avoid paying 150k from next week. It’s my way of saying thank you for going through my free lessons and learning the little knowledge I have to share with you.

Also, it’s important to design the building plan before commencing the house construction. Your business plan is like your building plan. Don’t build your business without a plan. Take advantage of this special discount I’m giving this week and get the cooking gas business plan for only 50k.

Send your 50K now to:
Zenith Bank A/C: 1003960427
A/C Name: Chinedu David
Send chat to 08139006120 for confirmation of payment.

Bonus: I have a bonus information I want to share with you. I will tell you about it tomorrow. It’s my FREE information on THE BILLIONAIRES OF COOKING GAS BUSINESS.

Take These Steps To Setup Your Mini Cooking Gas Plant

Now that you have finished the lessons, you need to take some action steps. Setting up a cooking gas plant is not the same as opening a shop to sell products. It doesn’t happen in one day. There are steps you need to follow.

I want to take you through the likely process you should normally follow to setup your cooking gas plant. I’m going to guide you on what comes first, what follows after each step and what should come last.

I will also try to estimate a timeline for you. Some timelines may be exact, while some will just be estimates. If you follow this guide in step by step you will achieve your target much faster.

Step One: Cooking Gas Business Plan & Feasibility Report

If you won’t get these documents done don’t go into cooking gas business. It’s not because you need to pay me to do it for you. It’s like building a house without a building plan. So many things will go wrong.

It might be a costly mistake later if you didn’t do a feasibility report on the approved location. If you decide to relocate your cooking gas plant, DPR will charge you the same amount paid at the initial approval stage and still subject you to all the rigors like the first time.

You will also be investing blindly without a clear goal as to why you are putting the millions into the gas plant. You need to know the viability and potential of the location before you invest in money. Paying 150k to save you from losing over 10 million naira is not a wrong decision.

This one takes like 2 weeks. And it cost just 150k to write the plan and conduct the feasibility study for your approved location where you intend to setup your cooking gas business.

Step Two: Acquire Land or Space

Once you have identified the right location to setup your cooking gas plant, go ahead and secure a location in that area. Identify the best location in that area and hire agents to start looking for available land or space for you.

Also, you should have known the cost of lands there and the process of acquiring one. You must equally describe to the agents the kind of property you want based on DPR requirements. The first DPR approval is location. So, getting the right location that would meet DPR requirements is important.

Make sure that the location is within a motorable area, and if possible a major road. Avoid lands near school or public areas like church, mosque, or anywhere large number of people gather like close to market. It can be near a market but not close enough.

Although, no specific timeline can be assign for this but you can decide how long you want it to take. Some might take a week, a month or even 6 months to get a prime location for this business.

Step Three: Request DPR Approval to Construct

The first approval from DPR is approval to construct. If you haven’t obtained this you can begin construction. This means that DPR have inspected the land and it’s confirmed okay for cooking gas plant.

Until you pass this test, you cannot start building anything on the land. DPR will look for the conditions early mention in step two. And also the land must meet DPR approved land size of 100 meters by 100 meters or one plot of land for mini cooking gas plant of not more than 5 metric tonnes or two plots for 10 metric tonnes and more.

Also, getting DPR approval for your cooking gas business can take a minimum of 6 months. It can be more because but not less, and also until you meet all the statutory requirements. After each inspection, if they notice any non compliance, DPR will still request that you comply with identified complains before they can come to inspect again or give approval.

Note that it’s better to hire an experience gas engineer to construct your cooking gas plant. It will ensure that the work meets all DPR requirements without costing you additional money in adjustments to meet the conditions.

Step Four: Purchase & Installation of Cooking Gas Tank

Nice you have approval to construct from DPR, you can purchase your cooking gas plant tank. Your technical partners would ensure that you follow and meet all approval requirements.

However, buying a new turnkey cooking gas plant tank is more profitable and saves you unnecessary delays from DPR approval. And ensure that you only install the appropriate gas tank size approved for your location.

This one can take a month or two depending on the scope of work both to be done by you and the technical partners.

Step Five: Final Approval & Inspections

After building and installation of the gas plant, DPR will still come again to inspect the final work. If you have complied with all requirements that’s the day you get the final approval to commence cooking gas business.

DPR will conduct all manner of test including pressure and safety compliance tests. They will check distance between the gas tank and the wall. They will check wall for fire resistance. Check for borehole or other water sources if available. They will check if you have trained your staff and you are ready to commence operation.

You can check DPR approval document to ensure that all compliance are meet before inviting DPR to conduct this final inspection.

Step Six: Cooking Gas Supply & Marketing

Once DPR gives a go ahead to start selling cooking gas, you should order your first cooking gas supply. If your technical partner is working with a reputable cooking gas company, you will also enjoy a good supply arrangement.

As a new cooking gas plant, you should get your first supply fast enough. At least within a week of ordering. But that would depend on your supplier arrangement.

This is when the joy is complete, as you receive the first cooking gas supply and sell to your first customer. Don’t take this time casually. Take good pictures with all your first day customers and celebrate it.

Conclusion

Apart from DPR approvals which can take a minimum of 6 months, the other aspect of setting up your cooking gas business is within your time to control.

However, I would advise that you don’t do anything in a hurry. Allow room for some delays, disappointments and short comings. Don’t be too hard on yourself. Take your time to see the project through.

It’s not the kind of business you conceive in one day. It can take up to one year to fully setup your cooking gas plant.

success marketing seminar
success marketing seminar

Technical Partners & Consulting Services

I have two essential services I’m offering you here. One is a technical partnership. In one of the lessons, I also explained the role of a technical partner. We have a partner company that can be of help to you in a positive way that will be helpful and profitable for your business.

Rhino Industrial & Trading Company Limited is affiliated to significant gas companies in Nigeria and abroad. We work with over 15 renowned experts in the industry, both in Nigeria and overseas.

We provide cooking gas tanks, trucks, types of equipment, accessories, technical services and gas content.

We also provide free transport and installation services to customers who buy our cooking gas plant of any size.

Note: The company is located in Lagos. But always consult me before you buy anything so I can guide you well.

2. Chinedu David Consulting Service Fees

If you want to hire me for your cooking gas plant project, I have made it very easy to do so. I know that not everyone may be able to pay for my consulting service. So, I have broken down some of the parts in a way you can take advantage of my knowledge and experience according to your pocket.

Even if you cannot afford me, don’t be discouraged from contacting me. Everything in life is not all about money. I can always find a way to be of little help to you in my own way.

Below is the list of services I offer and their rates:

A. 1-year consulting fee – N1.5 million
B. Business plan and feasibility report – N150k
C. Customized Business Model – N200k
D. Customised Marketing Plan – N150k
E. Gas plant site visit – between N20k to N50k (Consideration is given to closer locations).
F. Enquiries – is free. Always feel free to ask questions and inquire about anything you need to know about starting a cooking gas plant. I don’t charge for this one. Lol.

I have added the rates to make it easier for you to plan for it. Always contact me for additional information before you make up your mind or make payment.

Make Payment into:
Zenith Bank A/C: 1003960427
A/C Name: Chinedu David

After Payment Contact:
Phone/WhatsApp: 08139006120

Note: My consulting service is personal service I render. It’s not linked to Rhino or any other company. So you are dealing with me as a person. I have a face and can feel. So I’m your best partner in this project more than any company.

P.S: Take advantage of my visiting services. It’s the cheapest I’m offering, and it’s for a reason. For those who can’t afford most of my services, a visit to your location can help you a great deal. I know you will like to come to see me. But I would instead you invite me. This business is location-based, and I want to be useful to you. If I go to you, I will help you make some decisions about your location because I will take a tour around and make my contributions. But if you visit me, we will just take the same theory I would have given you on WhatsApp or phone call. I know my fees are stated for this. But if you look at it very well, you might spend the same amount to come to visit me, and it won’t be of much profit to you. My mission is to help, and I hope you take advantage of when it’s available for you.

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