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.
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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
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– MARKET RESEARCH REPORTS IN NIGERIA
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