Oil And Gas

LUBRICANT OIL {ENGINE OIL} PRODUCTION IN NIGERIA; THE OPPORTUNITY.

Petroleum products are useful materials derived from crude oil (petroleum) as it is processed in oil refineries. Major products of oil refineries includes asphalt, liquefied petroleum gas, diesel fuel, lubricating oils, fuel oils, gasoline, kerosene, paraffin wax, tar, petrochemicals.

The importance of engine oil cannot be over emphasized. Oil is the life of any engine. Its main role is to provide lubrication to moving parts and transfer heat. It keeps the moving parts from grinding against each other causing wear and damage.

The demand for engine oil in Nigeria is from vehicle owners, generators owners, industries and motorcyclists. Engine oil is used by both petrol and diesel engine oil, though in different grades. The petrol engine oil are used in serving passenger car (light cars) while diesel engine oil are used in servicing generators (small and big) and also for heavy cars(diesel cars). There are still grades of diesel engine oil (monograde and multigrade) monogrades are commonly used in Nigeria, although pple are now beginning to appreciate multigrades. The viscosity of the oil is a function of the grade.

Viscosity is the measurement of how thick the oil is. Multi grade oils are rated typically with 2 numbers which show:-

1) The thinness (viscosity or how runny it is!) at low temperature (W= winter)
2) The thickness (viscosity or how sticky it is!) at high temperature

The first number denotes the weight of the oil when cold and the second number denotes the weight of the oil when operating at optimum temperature.

The raw materials required for the production of Lubricants are readily available in Nigeria. It can be sourced from virgin material or through recycling.

The production process for engine oil involves procurement of base oil from refineries; the procured base oil is now filled into the blending plant after which additives such as detergents, anti-corrosive chemicals, dispersants are added. Heating and agitation simultaneously take place to achieve blending of the oil with the chemicals.

After blending, the product is allowed to cool down before being filled into various containers such as drums and kegs. Prospective investors can be assisted in terms of formation, production and sourcing of inputs including production machines.

The Lube market consists of two major segments, automotive and industrial, having a market share of 70% and 30%, respectively. Most of the competition is crowding into the first category. In the automotive segment, while cars, Generators and two or three wheelers segment accounts for 65% of the market, diesel operated engines, trucks and other heavy vehicles have the bulk share of 35%.

The lubricating oil and grease are one of the most important sectors of the petrochemical industry. The size of lubricating oil and grease market in Nigeria is estimated at over N 700 billion and is growing at around 3.5% annually.

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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.
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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.

Should you require a feasibility report on the above subject matter, please do use any of the means below to reach us.

Do you require one- on- one consultancy 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.

LIQUEFIED PETROLEUM GAS BULK STORAGE AND MARKETING IN NIGERIA; HOW VIABLE?

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

LPG is a derivative of two large energy industries: natural gas processing and crude oil refining. When natural gas is extracted from the earth, it is a mixture of several gases and liquids. Methane, which is sold by gas utilities as “natural gas” constitutes about 90 percent of this mixture. Of the remaining 10 percent, 5 percent is propane and 5 percent is other gases such as butane and ethane.

Before natural gas can be transported or used, the LP Gases (which are slightly heavier than methane, the major component of natural gas) are separated out. Depending on the “wetness” of a producing gas field, gas liquids generally contain 1%-3% of the unprocessed gas stream. Some LP Gases are also trapped in crude oil. In order to stabilize the crude oil for pipeline or tanker distribution, these “associated” or “natural gases” are further processed into LP Gas.
Worldwide, gas processing is a source of approximately 60% of LP Gas produced.

In crude oil refining, the LP Gases are the first products produced on the way to making the heavier fuels such as diesel, jet fuel, fuel oil, and gasoline. Roughly 3% of a typical barrel of crude oil is refined into LP Gas although as much as 40% of a barrel could be converted into LP Gas. Worldwide, crude oil refining is the source for the other 40% of LP Gas supplies although the ratio between gas processing and refining varies among Petroleum producing countries.

LP Gas production from these sources is a natural derivative. That means production of LP Gas is assured since the primary motive for gas processors and refiners is to produce fuels other than LP Gas but first the LP Gases are produced Although tied to the production of natural gas and crude oil, LP Gas has its own distinct marketing advantages and can perform nearly every fuel function of the primary fuels from which it is derived.

With huge gas reserves of 185 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

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

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.

The need to increase LPG consumption in Nigeria cannot be ignored by anyone because of the country’s large latent demand potential and population.

Today, Nigeria consumes about 110, 000MT per annum and we have about 130 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.”

More succinctly, a captive market of over 165 million people makes investment in LPG bottling plant viable since one of the challenges the Federal Government as well as LPG operators are forced to grapple with is how to popularize the use of cooking gas in Nigeria therefore , forward thinking investors interested in the Nigerian oil and gas industry will make money from building cooking gas filling plants because LPG is a domestic product that will eventually replace kerosene in the country due to its environmental friendly nature.

Investment  in LPG Bulk storage is one of the numerous investment opportunities in the LPG value chain as  sub- distributors  (  re-filling plant  owners)  with bullet truck must purchase from bulk traders .

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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.

You can order our detailed feasibility report on liquefied petroleum gas bulk storage and market in Nigeria by clicking on the link below.

Report Title: LIQUEFIED PETROLEUM GAS BULK STORAGE AND MARKETING; THE FEASIBILITY REPORT.

Report Code: FORA/2014/3074841/0995663

Do you require one- on- one consultancy 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.

LIQUEFIED PETROLEUM GAS {LPG} CYLINDER PRODUCTION IN NIGERIA; A VIABLE INVESTMENT OPPORTUNITY.

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.

Undoubtedly a vast investment potential exists in the domestic liquefied petroleum gas filling sub-sector of the Oil & Gas Industry in Nigeria. A large proportion of the middle and upper socio-economic class of people depend on gas for cooking purposes. So are industries, government establishments, hotels, hospitals, restaurants, bakeries e.t.c

A statistic for the country some years ago showed that a mere 5% of the consumption potentials of liquefied petroleum gas (LPG) were attained. It is therefore evident that we have a long way to saturate the Nigeria LPG Market if it were to be fully developed because if a domestic consumer is sure of getting liquefied petroleum gas (LPG) when and where he needs it at the right price, he would most willingly convert from firewood, coal or kerosene to liquefied petroleum gas (LPG).

With huge gas reserves of 185 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.
With less than one kilogram me per capita consumption, Nigeria ranks among the lowest liquefied petroleum gas consuming states in Africa despite its huge gas resources.

Today, Nigeria consumes about 110, 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 liquefied petroleum gas (LPG) plants and 74,970 retailing outlets.

More succinctly, a captive market of over 165 million people makes investment in liquefied petroleum gas (LPG) bottling plant viable since one of the challenges the Federal Government as well as liquefied petroleum gas (LPG)  operators are forced to grapple with is how to popularize the use of cooking gas in Nigeria.

Following the unprecedented demand for liquefied petroleum gas (LPG) in Nigeria and attendant scarcity of the product which has resulted in sharp and arbitrary price increases, the distribution of gas products has been deregulated. Consequently, this has opened up a lot of opportunities in the industry and one of such opportunities is the production of liquefied petroleum gas (LPG) cylinder in Nigeria.

Local gas cylinder manufacturing scheme is supported by Section 53 of the Nigerian Content Act, which prohibits the importation of welded steel products.

About 2.5 mn cylinders are estimated to be in the country and over 70% of this volume are imported.

LPG Cylinder is an essential item for filling liquefied petroleum gas used for cooling purpose. 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. LPG cylinders are in use 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 policy on promotion of local content in key sectors of the economy may soon result in a ban on importation of gas cylin­ders into the country. Moves for the ban are now being initiated by the Nigerian Content Development and Monitoring Board (NCDMB) in collaboration with major stakeholders in the oil and gas sector, including the Nigerian National Petroleum Corporation (NNPC), Oando Group and Sahara Energy.

At present, a survey has found that only five percent of an estimated 26 million Nigerian families use cooking gas. This initiative, when it comes on stream, will encourage more families to use gas and gas cylinders. About 2.5 million cylinders are currently esti­mated to be in the country.

The demand and supply balance is in favour of demand which will continue to outstrip supply. Liquefied petroleum gas (LPG) is a good substitute for kerosene in homes. Its clean burning properties in a properly twined engine, give reduced exhaust emissions, extended lubricant and spark giving rise to the demand of Liquefied petroleum gas (LPG) cylinders.

————————————————————————————————————————————————————
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.

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

Report Title: ESTABLISHING A LIQUEFIED PETROLEUM GAS {LPG} FILLING PLANT IN NIGERIA: THE FEASIBILITY REPORT.

Report Code: OILDEALS01

Report Title: LIQUEFIED PETROLEUM GAS {LPG} REFILLING AND DISTRIBUTION IN NIGERIA; THE FEASIBILITY REPORT.

Report Code: FORA/01/2015/LPGRETAILING/03990-563-3

Report Title: SETTING UP A LIQUEFIED PETROLEUM GAS ({LPG) SKID FILLING PLANT IN NIGERIA;THE PRE-FEASIBILITY REPORT.

Report Code: FORA/01/2015/SKIDMOUNTEDLPGPLANT/0997740-03

Please do using any of the means below to contact us in order to engage us in preparing a bankable feasibility report for you.

Office Phone Number: 01- 295 24 1301- 295 24 13 {Monday – Saturday; 8 am – 5 pm}

Mobile Number:  +234 {0} 8033782777 , +234 {0} 9083357733 {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, Suit 39,
Iyana Ejigbo Bus Stop,
Ejigbo, Lagos.

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