Oil And Gas

Importation of Liquified Petroleum Gas Cylinder in Nigeria; The Opportunities

Petroleum products are among the most valuable natural resources abundantly available in our country. Nigerians and people everywhere use petroleum products as a fuel in their automobiles, generating sets, industrial plants and for cooking purposes, thus making petroleum products an essential commodity that is needed for the daily operations of individual, industrial and national activities.

With huge gas reserves of one hundred and eighty-five (185,000,000,00) trillion cubic feet and the Nigerian government’s strong commitment to developing the gas industry through the Gas Master Plan, there are a lot of emerging opportunities for investors in the sub- sector.

Liquefied Petroleum Gas (LPG) is used as fuel for cooking and heating in the manufacturing Industry. It is also used for power generation.

L.P.G or Liquefied Petroleum Gas is the general name for propane (C3 H8) and butane gases (C4 H10), either stored together at varying percentages or separately. Butane usually comes in blue cylinders, while propane comes in red cylinders if stored separately.

As a fuel, L.P.G has several advantages over other fuels, including:

Weight and portability- Though heavier than air, L.P.G is approximately just half the weight of water, thus making it easier to be stored in pressure cylinders and tanks and hence, could easily be transported over long distances.

Cleaner- L.P.G burns cleanly and virtually without any soot as it mixes completely with air, which creates a perfect combustion with low carbon and sulphur emissions.

Odourless- Compared to other fuels, L.P.G is an odourless fuel. However, some suppliers usually add odorants in order for leakages to be easily perceived and detected.

Non- toxic- L.P.G is non- toxic. Prolonged and sudden exposure to it in reasonable quantity could however, cause cold burns and suffocation.

Cheaper- Compared to other fuels and even electricity, L.P.G is more cost effective.

Complexity and maintenance- L.P.G installations are less complicated, easy to maintain and even requires less maintenance.

With less than one kilogram per capita consumption, Nigeria ranks among the lowest liquefied petroleum gas consuming states in Africa despite its huge gas resources.

Although, the market is currently fraught with decayed infrastructure, the five- year growth projection of the Federal Government, according to experts, will attract investment across the LPG value chain from storage, logistics, to filling plants and cylinders, among others.

Liquefied Petroleum Gas (LPG) cylinder is an essential item for filling liquefied petroleum gas used for cooling purpose. Liquefied Petroleum Gas (LPG) cylinder consisting of 3 main parts: body, foot ring and valve guard ring.

The body of LPG cylinder is deep drawn in two pieces then these are welded together to make a compact unit without any leak and defect etc. The liquefied petroleum gas (LPG) cylinder can be produced in 3 KG, 6.25 KG, 12.5 KG and 50 KG capacities.

To ascertain the quality, safety and performance certain regulations are applicable such as NIS 69: 2006 standardization. The LPG Cylinder is regarded by the Standard Organisation of Nigeria (SON) as a high risk item of import due to its use in gas storage for domestic cooking and several other purposes. For this reason, SON has taken measures to ensure that the item passes through repeated scrutiny before being imported into Nigeria.

Today, Nigeria consumes 100, 000MT per annum and we have about 130 Liquefied petroleum gas (LPG) plants and 7,000 retailing outlets. If we can move the consumption level up to 750,000MT per annum, we expect to have about 250 LPG plants and 74,970 retailing outlets. About 2.5 mn cylinders are estimated to be in the country and over 70% of this volume are imported.

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Foraminifera Market Research Limited (www.foramfera.com) is part of a family of businesses, which includes several brands such as

Hausworth Nigeria Limited owners of

365 Home Improvement — www.365homeimprovement.com (Nigeria’s One Stop Home Improvement Portal)
365 Property Portal — www.365propertyportal.com (Property listing, building materials sales and movers in Nigeria)

Kyneli Business Support Services owners of

www.365campaigner.com

365 Campaigner is a complete suite of social collaboration, communication and management tools for your team. From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals.
—————————————————————————————————————————————————————–

At Foraminifera Market Research (www.foramfera.com), we provide bespoke and up to date market research reports. Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

You can purchase our reports on the following subject matter

LIQUIFIED PETROLEUM GAS (LPG) CYLINDER PRODUCTION IN NIGERIA; THE FEASIBILITY REPORT
ESTABLISHING A LIQUIFIED PETROLEUM GAS (LPG) PLANT IN NIGERIA; THE FEASIBILITY REPORT
LIQUIFIED PETROLEUM GAS (LPG) REFILLING AND DISTRIBUTION IN NIGERIA; THE FEASIBILITY REPORT
ESTABLISHING A SKID MOUNTED LIQUIFIED PETROLEUM GAS (LPG) PLANT IN NIGERIA; THE FEASIBILITY REPORT

Access our other Market Research Reports or investment opportunities in Nigeria by clicking on the link below

MARKET RESEARCH REPORTS IN NIGERIA
INVESTMENT OPPORTUNITIES IN NIGERIA

Do you require a business plan or feasibility report on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 (Monday – Saturday; 8 am – 5 pm)

Mobile Number: +234 (0) 8033782777;+ 234 (0) 908 335 7733 (Monday – Saturday; 8 am – 6 pm)

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

CRUDE OIL REFINING IN NIGERIA: ESTABLISHING A MINI REFINERY AND PORTABLE CRUDE OIL DISTILLATION PLANT IN NIGERIA.

Nigeria has for long been a major producer of crude oil ever since the first commercial well was drilled in Oloibiri in present day Bayelsa state. The country presently has an estimated 35.3 billion barrels of hydrocarbon both onshore and offshore assets mostly domiciled in the Niger Delta basin. Nigeria presently ranks tenth in the most petroleum-rich nation, and by the far the most affluent in Africa producing over two million {2,000,000} barrels per day.

Nigeria’s hydrocarbon is classified mostly as “light” and “sweet”, as the oil is largely free of sulphur. Nigeria is the largest producer of sweet oil in OPEC, the organization for petroleum exporting countries. This sweet oil is similar in composition to petroleum extracted from the North Sea. This crude oil is known as “Bonny light”. Names of other Nigerian crudes, all of which are named according to export terminal, are Qua Ibo, Escravos blend, Brass rivers, Forcados, and Pennington Anfan.

Investment opportunities in the oil and gas industry in Nigeria can be stratified along three categories namely the up-stream, middle stream and down-stream sectors. While the middle-stream and downstream sectors as to do with importation, storage and marketing of refined petroleum products,the upstream sector is devoted to the exploration ,production and refining of hydrocarbons.

For far too long the nation has been dependant on importation of refined petroleum products due to the fact the four crude oil refinery in Nigeria cannot meet the local demand for the product which currently stands at an estimated sixty million {60,000,000} liters of refined petroleum products {PMS, DPK and AGO} per day.

Really there has never been a doubt about the large size of the Nigeria market for the refined petroleum products which is one of the largest in Africa; the problem has been that of government policy and regulation. The idea of using subsidy to augment the retail price of refined petroleum products in Nigeria though a good initiative encourages the importation of the product than local refining of the product.

In view of the recent ban on subsidy, the coast is now clear for savvy investors to the opportunity and invests the local refining of hydrocarbon in Nigeria hence the need for this article to raise awareness about the opportunity.

The Mini Refinery & Portable Crude Oil Distillation Plant is capable of processing from 2,000 Barrels Per Day (BPD) of any stream of Light or Heavy Crude Oil within API Gravity of 29°- 42.8°, into Naphtha, Diesel, Kerosene and Fuel Oil.

Mini Refineries are ideally suited for remote locations and are viable for Investments by Private and Public Sector Groups as a source of rapid production of primary fuel products and raw materials for Petrochemical Downstream Industries.

The investor can apply for oil block allocation or partner with government at different level on a PPP basis to guarantee investment and feedstock for the production plant.

Establishing a crude oil refinery requires approval from the department of petroleum resources, the petroleum regulatory organisation in Nigeria.

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Foraminifera Market Research Limited (www.foramfera.com) is part of a family of businesses, which includes several brands such as

Hausworth Nigeria Limited owners of

365 Home Improvement — www.365homeimprovement.com (Nigeria’s One Stop Home Improvement Portal)
365 Property Portal — www.365propertyportal.com (Property listing, building materials sales and movers in Nigeria)

Kyneli Business Support Services owners of

www.365campaigner.com

365 Campaigner is a complete suite of social collaboration, communication and management tools for your team. From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals.
———————————————————————————————————————

At Foraminifera Market Research (www.foramfera.com), we provide bespoke and up to date market research reports. Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

You can order for our report on establishing a modular refinery in Nigeria by clicking on the link below

ESTABLISHING A MODULAR REFINERY IN NIGERIA ; THE FEASIBILITY REPORT.

LEASING AND OPERATING A TANK FARM IN NIGERIA; THE FEASIBILITY REPORT
ESTABLISHING A TANK FARM IN NIGERIA; THE FEASIBILITY REPORT

Access our other Market Research Reports or investment opportunities in Nigeria by clicking on the link below

MARKET RESEARCH REPORTS IN NIGERIA
INVESTMENT OPPORTUNITIES IN NIGERIA

Do you require a business plan or feasibility report on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 (Monday – Saturday; 8 am – 5 pm)

Mobile Number: +234 (0) 8033782777;+ 234 (0) 908 335 7733 (Monday – Saturday; 8 am – 6 pm)

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

ESTABLISHING A LIQUEFIED PETROLEUM GAS (LPG) FILLING PLANT IN NIGERIA.

Liquefied petroleum gas {LPG} is a flammable mixture of hydrocarbon gases used as a fuel in heating appliances and vehicle. LPG is synthesized by refining petroleum or “wet” natural gas, and is almost derived entirely from fossil fuel. Being manufactured during the refining of crude oil, or extracted from petroleum or natural gas streams as they emerge from the ground.

Liquefied petroleum gas, or LP gas is one of the most common alternative fuels used in the world today. In fact, in many places, it isn’t an alternative fuel at all. LP gas is the mainstay for heating and cooking in certain areas of India and some rural areas of the United States.

With less than one kilogramme per capita consumption, Nigeria ranks among the lowest liquefied petroleum gas consuming states in Africa despite its huge gas resources.

Nigeria currently consumes about 70,000 MT per annum and has about 130 LPG plant and 7,000 retailing outlet scattered across the federation.

However ,with a huge gas reserve of 185 trillion cubic feet and government’s strong commitment to increase the local consumption of liquefied petroleum gas from 70,000 MT per annum, where it present stands, to 1,000,000 MT annually by 2015, opportunities are emerging for the establishment of liquefied petroleum gas plants in Nigeria.

In accordance with provision part IV, section, sub section {2} of the petroleum resolution of 1967, any bulk storage or depot for liquefied petroleum gas in Nigeria shall be operated with license. Therefore application for approval to construct and operate a liquefied petroleum gas filling plant for the purpose of retailing to the public must be submitted to the Directorate of Petroleum Resources {DPR}. This should be accompanied with details of the proposal and any other information that may be relevant to the project.

There must be evidence that the company applying for DPR approval is duly registered as a limited liability company by the appropriate federal ministry to deal in petroleum product. Other documents that must be attached to the application include tax clearance certificate for the preceding years.

Three {3} copies of a plan showing the buildings existing or proposed on the site and the relation of the site to the roadway and adjoining property must be submitted along with the application. Also required is a certificate signed by the chief federal/ state fire officer or an officer authorized.

The certificate from the town planning and police authority is also required. An environmental impact assessment of the proposed plant is also needed.

Though LPG is mostly used by enlightened populace in Nigeria, the market is National. With a population of over 140 million people, estimated national population growth rate of 5.7% per annum and an average economic growth rate of 3.5 % in the past five {5} years, Nigeria has a large ,expanding and sustainable market for liquefied petroleum gas.

The raw materials required for production can be sourced from Nigeria with the selling price of 12.5 cylinder averaging N 2,200. Opportunity also exists in the retailing of the product where the investor can make between N 300 – N 500 per 12.5 cylinders.

———————————————————————————————————————
Foraminifera Market Research Limited (www.foramfera.com) is part of a family of businesses, which includes several brands such as

Hausworth Nigeria Limited owners of

365 Home Improvement — www.365homeimprovement.com (Nigeria’s One Stop Home Improvement Portal)
365 Property Portal — www.365propertyportal.com (Property listing, building materials sales and movers in Nigeria)

Kyneli Business Support Services owners of

www.365campaigner.com

365 Campaigner is a complete suite of social collaboration, communication and management tools for your team. From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals.
———————————————————————————————————————

At Foraminifera Market Research (www.foramfera.com), we provide bespoke and up to date market research reports. Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

You can order our detailed feasibility report on establishing a liquefied natural gas plant in Nigeria by clicking on the link below.

LIQUIFIED PETROLUEM GAS {LPG} REFILLING AND DISTRIBUTION IN NIGERIA; THE FEASIBILITY REPORT.
ESTABLISHING A LIQUIFIED PETROLEUM GAS {LPG} FILLING PLANT IN NIGERIA: THE FEASIBILITY REPORT.
LIQUEFIED PETROLEUM GAS BULK STORAGE AND MARKETING; THE FEASIBILITY REPORT.
LIQUIFIED PETROLUEM GAS {LPG} REFILLING AND DISTRIBUTION IN NIGERIA; THE FEASIBILITY REPORT.
ESTABLISHING A MODULAR REFINERY IN NIGERIA ; THE FEASIBILITY REPORT.
LEASING AND OPERATING A TANK FARM IN NIGERIA; THE FEASIBILITY REPORT
ESTABLISHING A TANK FARM IN NIGERIA; THE FEASIBILITY REPORT

Access our other Market Research Reports or investment opportunities in Nigeria by clicking on the link below

MARKET RESEARCH REPORTS IN NIGERIA
INVESTMENT OPPORTUNITIES IN NIGERIA

Do you require a business plan or feasibility report on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 (Monday – Saturday; 8 am – 5 pm)

Mobile Number: +234 (0) 8033782777;+ 234 (0) 908 335 7733 (Monday – Saturday; 8 am – 6 pm)

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

HOW TO START YOUR PETROLEUM BROKERAGE SERVICE BUSINESS AND EARN FINDERS FEE FROM CRUDE OIL AND REFINED PETROLEUM TRADING IN NIGERIA.

Nigeria has for long been a major producer of crude oil ever since the first commercial well was drilled in Oloibiri in present day Bayelsa state. The country presently has an estimated 35.3 billion barrels both onshore and offshore assets mostly domiciled in the Niger Delta basin. Nigeria presently ranks tenth in the most petroleum-rich nation, and by the far the most affluent in Africa producing about two million {2,000,000} barrels per day.

Nigeria’s petroleum is classified mostly as “light” and “sweet”, as the oil is largely free of sulphur. Nigeria is the largest producer of sweet oil in OPEC. This sweet oil is similar in composition to petroleum extracted from the North Sea. This crude oil is known as “Bonny light”. Names of other Nigerian crudes, all of which are named according to export terminal, are Qua Ibo, Escravos blend, Brass River, Forcados, and Pennington Anfan.

Sales of crude oil in Nigeria are usually done through the Nigeria National Petroleum Corporation {NNPC} on FOB basis. Prospective buyers can also source the product on the following delivery terms from other source CIF, TTT or TTO.

FOB – Free On Board (named loading port): The classic maritime trade term, seller must load the goods on board the ship nominated by the buyer, cost and risk being divided at ship’s rail. The seller must clear the goods for export.

TTO- Tanker-Taker-Over: As the name suggests refers to a situation where the buyer takes over the hiring of the pregnant vessel along with the product it contains.

TTT- Tanker to Tanker Transfer: This refers to a situation where the buyer hires his own vessel and uses same to purchase products from the seller.

Petroleum products are among the most valuable natural resources abundantly available in our country. Nigerians and people everywhere use petroleum products as a fuel in their automobiles, generating sets, industrial plants and for cooking purposes, thus making petroleum products an essential commodity that is needed for the daily operations of individual, industrial and national activities.

Nigeria being an oil producing nation however still relies on imported petroleum products for the servicing of the economy. Such petroleum products as Petrol (PMS), Diesel (AGO) and kerosene (DPK) are products utilized by almost everybody on daily basis at an average of 60 million litres daily usage. Due to increasing level of standard of living, more Nigerians are increasing the number of cars on the road, the need for constant power supply to aid uninterrupted production of goods and services and also for domestic use more Nigerians are increasing the demand for fuel in order to enjoy the usage of their generating sets and industrial plants

Opportunities also exist to broker deals on the sales of refined petroleum products.

Entrepreneur can earn finder’s fee from the sales of crude oil, refined petroleum products and storage tank rental, lease or sales.

Brokerage services are highly required in the oil and gas industry in order to link a buyer with a seller.

You can order our detailed feasibility report on the investment opportunities in the downstream sector of the oil and gas industry in Nigeria or offering brokerage services in the oil and gas industry in Nigeria by clicking on the link below.

Report Tile: FEASIBILITY REPORT ON DOWNSTREAM OIL BUSINESS NIGERIA.
Report Code: FORA/2013/300/1082/84637

Report Tile: FEASIBILITY REPORT ON BROKERAGE SERVICES IN THE DOWNSTREAM OIL AND GAS SECTOR IN NIGERIA.
Report Code: FORA/2013/300/1082/73524

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365 Campaigner is a complete suite of social collaboration, communication and management tools for your team.

From List building solution to event announcement and CRM, 365 Campaigner provides everything you need to boost sales, step up productivity and manage all day-to-day activities. Tightly integrated.

365 Campaign is the one stop shop for digital marketing solutions for businesses, politicians, religious organizations and individuals. Visit www.365campaigner.com for more information.
————————————————————————————————————————————————————–
At Foraminifera Market Research {www.foramfera.com}, we provide bespoke and up to date market research reports for start-ups and those already in business.

Our reports are designed to assist start-ups to understand the legal and financial requirements of starting the business, the market trends vis-a-vis demand and supply, competition, risk identification and mitigation strategies.

Do you require one- on- one training on the subject matter? Contact us with any of the details provided below to arrange a meeting

Office Phone Number: 01- 295 24 13 {Monday – Saturday; 8 am – 5 pm}

Mobile Number: +234 {0} 8033782777 ;+ 234 (0) 908 335 7733 {Monday – Saturday; 8 am – 6 pm}

E-Mail Address: enquiries@foramfera.com

CC: foraminiferamarketresearch@yahoo.com

Office Address:

61-65 Egbe- Isolo Road,

Iyana Ejigbo Shopping Arcade,

Block C, Suite 39,

Iyana Ejigbo Bus Stop,

Ejigbo, Lagos.

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