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Nairaland Forum / Nairaland / General / Business / The Highly Lucrative Lpg/cooking Gas Station Business (62023 Views)
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The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 5:28pm On Jul 13, 2015 |
My face contorts into a frown whenever I stumble on threads where investors with a substantial amount of money are advised to invest in low-yielding or outrightly bad businesses. As an enterpreneur who possesses a fairly rich repertoire of investment information and, one who has made a foray into several businesses, I can confidently declare that the LPG/Cooking Gas Station/plant business is one of the most lucrative businesses in Nigeria- more lucrative than having a Filling Station (Petrol Station). Unfortunately, most people think you need several millions of naira to set up a Gas Station/Plant. While a Mini-Plant (5 Ton Capacity) gulps at least 5 Million Naira to set up, you can be the happy owner of a 2.5 Ton Gas station with about 3.25 Million Naira only. And what can be more irresistible; you can recoup your investment in a year or less, if your station is sited in a residenial area with a sizeable middle-class population. To highlight how lucrative the business is, a Gas Plant (name witheld for security reasons- armed robbers, scammers and kidnappers) exhausted its 20 Ton transport tank within two days during the last gas scarcity period, raking in profit in excess of 600, 000 Naira. For those who are wary of the danger of fire outbreaks at the station, let me allay your fears by stating that it is quite hard for a gas station to be engulfed in flames, if the basic safety principles are adhered to. I deal with gas everyday at the plant and can safely say that gas, if handled properly, will not 'misbehave'. I challenge anyone interested in investing in the fast growing LPG industry to get into the 'field' to conduct their individual research in order to verify or shoot down my claims. And just in case you need LPG/cooking gas tanks of any capacity or need to construct a Standard Gas Station at an affordable cost, please don't hesitate to contact Avogadro Gas Services. Thank you 6 Likes 3 Shares
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Re: The Highly Lucrative Lpg/cooking Gas Station Business by ITbomb(m): 5:40pm On Jul 13, 2015 |
Bookmarked This is my dream project after "the pay day". I downloaded on LPG feasibility study book and the cost was frightening. The plan is for the tank farm to be in government designated area which is obviously out of residential area then another retail / service centre at the junction of the residential area. Do you have a website? 1 Like |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 6:10am On Jul 14, 2015 |
ITbomb: The reason the cost is frightening is because just a few companies/people are into the business of importing gas tanks and constructing gas plants at the moment. By the time more people venture into it, the cost of the project will invariably reduce. Our website will come on stream shortly. Meanwhile, I urge you to conduct more research into the business. You can start frequenting a gas station to see things for yourself. One more thing, because of the huge cost involved if you want to construct a standars gas plant - say 30 Tons, you can start processing your permits now provided you have some substantial amount now. You will need the following permits: 1. Police Report 2. Fire Planning Approval 3. Town Planning Permit 4. State Land and Physical Planning Permit 5. Department of Petroleum Resources License You need the following documents to process both the State L&P and DPR permits: 1. Environmental Impact Assessment 2. Mechanical Drawing 3. Architectural Drawing 4. Structural Drawing 5. Electrical Drawing You still need some more documents for the DPR license, which is the ultimate license needed to operate a gas plant. 11 Likes 3 Shares |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by dotsdavidson(m): 1:42pm On Jul 14, 2015 |
I am interested in this business, kindly satisfy my curiosity below; 1. Is the N5/3.5m quoted inclusive of the cost of land? 2. What are government's requirement as per the land/location of set up? 3. Is the capital sum constant irrespective of location nationwide? |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 3:12pm On Jul 14, 2015 |
dotsdavidson: 1. No, the quoted N5/3.5m doesn't include the cost of land. It includes the LPG tank, dispensing unit (pump), piping work and digital scale units. 2. The DPR requires a standard plant to be sited on four plots of land. The minimum distance from a tank and a fixed source of ignition (residential buildings etc) is 15m. However, several investors in Lagos and Ogun States, just find a convenient space that may not be even up to a plot of land to install 2.5 and 3 Ton tanks. A good understanding with neigbours is very important for its successful operation. Many others also partner with filling stations to place their 2.5/3 Ton tanks there. 3. The quoted sum is constant irrespective of the location within Nigeria, but the transportation cost of the tank (s) and other components will be borne by the investor. P.S If you intend to construct a plant on a piece of land in a residential area, ensure that you seek the approval of the community (especially the house owners adjoining your plant) before proceeding. This is important because you may find it diffucult or impossible to get the necessary permits if the community members write petitions to the regulatory authorities like DPR, State Land and Physical Planning, etc. Alternatively, if you suspect the community will kick against it; maybe there are one or two enemies of progress in your community, never disclose to anybody that you are constructing a gas plant. Apply for and process all the necessary permits before even bringing your tanks to the site. Your DPR approval process must get to an irreversible stage before you commence visible construction at the site. We are currently experiencing this very problem with a gas plant sited in a residential area. The owner of the plant secured the support(albeit reluctantly) of the community at the inception of the project, but they changed their minds in the aftermath of the explosion at the Arakale Gas plant in November, 2014. Consequently they wrote petitions against the project to DPR, State L&P, Comm. of Police, Town Planning and about four other agencies. The project is at a standstill as we speak. 3 Likes 2 Shares |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by dotsdavidson(m): 4:45pm On Jul 14, 2015 |
johnstin: Thanks for the insight. If one is looking at a location like Abuja, partnering with a filling station might be the best bet, because one may not be able to get away with inadequate land area specification unlike Lagos and Ogun. The total cost as spelt out does not require the necessary license/permit cost. What is the estimated total cost of obtaining same. 1 Like 1 Share |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by laudate: 8:42pm On Jul 14, 2015 |
@johnstin: The 2.5MT to 5MT is a mini gas skid. What kind of digital filling heads/scales are you planning to install? Do you have a picture that you can share? How do you connect an LPG Dispensing pump to the tanks? It would be easy to kill 2 birds with one stone, by having an auto gas dispenser connected to the tanks, so you can fill cars and cylinders at different points, simultaneously. Does your cost include fire suppression systems? What is the average construction time for a mini gas skid? It is not advisable to construct an LPG plant in a residential area. It is best to look for a commercial site close to the expressway, where LPG trucks that need to carry out delivery of gas to the site can easily turn and manoeuvre their way in and out of the site. 1 Like |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by dotsdavidson(m): 9:46am On Jul 16, 2015 |
laudate: @Johnstin, kindly respond asap. Thanks |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 2:17pm On Jul 18, 2015 |
dotsdavidson: I'm sorry for the delay in responding. Yes, 2.5MT to 5MT is a mini gas skid. Digital Filling Heads- 3 pieces of Nido, standard and camping filling heads Scale- 2 units of Camry TCS-ZE21 150kg Digital Scale Connecting LPG Dispenser to tank- We use flexible hoses to connect the piping from the tank (liquid line and vapour return line) to the dispenser outlets. Auto Gas Dispenser connected to the tank (s)- We only work with LPG Dispenser at the moment. As CNG usage increases in the country, we will incorporate Auto Gas Dispensing pumps into our plant design. Fire Suppression Systems- A fire suppression system comes at an additional cost. We will supply for units of Fire Extinguishers. Average Construction time for a Mini Gas Skid- 10 working days. Siting an LPG plant in a residential area- Yes, for safety reasons, it is generally not advisable to site an LPG plant havin storage vessels beyond 10 Tons Iin a residential area. Buy as you may already know, there are several 20 MT capacity plants scattered in residential areas across Lagos. In siting a 10MT+ plant in a residential area, accessibility of the size by bulk tankers and the size of the land are the most inportant factors to take into consideration. For example, siting a 20 MT plant on 10 plots of land with very wide access roads and a state-of-the-art fire suppression system in place is not bad. Thanks |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 2:29pm On Jul 18, 2015 |
dotsdavidson: You are welcome. Partnering with a filling station is an attractive option because you don't need to apply for any permit (s), since the permits the station already has, covers a gas set-up. No, the total cost given is exclusive of the cost of obtaining the required permits/license. Generally, the cost of permits/license varies from State to State and Company to Company. Your contacts at thr agencies and negotiations skills also come into play in determining the cost. I need to know he state you want to site the plant to give an estimate. |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by laudate: 4:35pm On Jul 18, 2015 |
johnstin: A 20MT gas plant in a residential area should be closed down, for safety reasons. It is highly irresponsible of the owners to place such gas plants close to people's homes. If you have ever seen an explosion from a gas tank, or if you have ever experienced a gas leak...then you will understand the hazards involved. As for Auto Gas dispensers, there are LPG Auto Gas Dispensers as well and they are cheaper to operate and install than CNG types. It depends on what kind of gas tank the vehicle carries, inside its boot. |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 4:54pm On Aug 17, 2015 |
A 10 Tonne LPG Tanker in good working condition Sold |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by laudate: 5:05pm On Aug 17, 2015 |
This picture is unclear. Why is it upside down?? 1 Like |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by WDESAFETY: 3:55pm On Aug 21, 2015 |
@Johnstin, how do I contact you? johnstin: |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 4:47pm On Aug 21, 2015 |
WDESAFETY:My mobile number is 07012617913. |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 4:49pm On Aug 21, 2015 |
laudate: |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 5:32pm On Aug 21, 2015 |
LPG Tanks, Pipework and the LPG Pumps are the critical components of a typical Gas Plant. Let me quickly mention that the quality levels of LPG tanks, pipes and LPG dispensing pumps, vary. Apparently, high quality doesn't come cheap. We offer pressure tested LPG tanks and piping, as well as very strong and rugged LPG pumps that can withstand tough service conditions and meet the specifications of regulatory authorities. In gas projects, it is not advisable to just choose the Installer that offers the lowest cost, without any due diligence. I'm equally not saying the Installer that quotes the highest must be the best. I'm encouraging anyone that wants to invest in a critical project like owing a Gas Plant to conduct their own little research before settling for an Installer. If you are given a mediocre LPG pump for example, you will dissappoint your customers often, lose money and spend a lot to carry out repairs on the pump. You may have to wait for days or weeks before the LPG technician will even "have your time". Owners of gas plants in places like Bauchi etc will understand what I'm talking about here. |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 5:55pm On Aug 21, 2015 |
LPG Pressure Vessels (tanks), Pipework and LPG Dispensing Pump are the critical components of a typical Gas Plant. Let me quickly mention that the quality levels of LPG Tanks, Piping and Dispensers, vary. Apparently, high quality doesn't come cheap; but it pays in the long run. For example, if you are unlucky to be given a mediocre LPG Pump that breaks down constantly, you will dissappoint your customers often- losing your market share in the process and spend a lot to pay for the repair cost. For owners of gas plants in locations like Bauchi, Ekiti etc. you may have to wait for several days or weeks before the LPG Tech will squeeze out time for you. We offer pressure test LPG tanks, pipework, as well as strong and rugged LPG Dispensers that withstand tough service conditions and meet the specifications of regulatory authorities. In a major project such as a Gas Plant project, it is advisable you carry out your own little independent research before settling for an installer. Don't just settle for the lowest bidder, or even the highest. The Installer with the highest quotation may not offer the best value for your money. 1 Like |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 9:46am On Aug 24, 2015 |
I'm happy to inform LPG investors about our new and very affordable installation package for the 2.5 Tonne (5000 liters) capacity LPG Skid. This installation package, which features imported fairly used pressure vessels (tanks) goes for 2.5 Million Naira only. The existing installation package, using brand new LPG tanks, stays at 3.5 Million Naira. Our imported fairly used tanks are in good condition, pressure tested and have a service lifespan of about 25 years. We assure you of a professional job that will accelerate the recoupment of your capital in the shortest possible time. Thank you 1 Like |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 6:10pm On Aug 25, 2015 |
2.5 Tonne(5000liters) LPD Skid using an imported fairly used tank. 1 Share
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Re: The Highly Lucrative Lpg/cooking Gas Station Business by adiukuonyebuchi: 6:06am On Aug 26, 2015 |
[quote author=johnstin post=35820414]My face contorts into a frown whenever I stumble on threads where investors with a substantial amount of money are advised to invest in low-yielding or outrightly bad businesses. As an enterpreneur who possesses a fairly rich repertoire of investment information and, one who has made a foray into several businesses, I can confidently declare that the LPG/Cooking Gas Station/plant business is one of the most lucrative businesses in Nigeria- more lucrative than having a Filling Station (Petrol Station). Unfortunately, most people think you need several millions of naira to set up a Gas Station/Plant. While a Mini-Plant (5 Ton Capacity) gulps at least 5 Million Naira to set up, you can be the happy owner of a 2.5 Ton Gas station with about 3.25 Million Naira only. And what can be more irresistible; you can recoup your investment in a year or less, if your station is sited in a residenial area with a sizeable middle-class population. To highlight how lucrative the business is, a Gas Plant (name witheld for security reasons- armed robbers, scammers and kidnappers) exhausted its 20 Ton transport tank within two days during the last gas scarcity period, raking in profit in excess of 600, 000 Naira. For those who are wary of the danger of fire outbreaks at the station, let me allay your fears by stating that it is quite hard for a gas station to be engulfed in flames, if the basic safety principles are adhered to. I deal with gas everyday at the plant and can safely say that gas, if handled properly, will not 'misbehave'. I challenge anyone interested in investing in the fast growing LPG industry to get into the 'field' to conduct their individual research in order to verify or shoot down my claims. And just in case you need LPG/cooking gas tanks of any capacity or need to construct a Standard Gas Station at an affordable cost, please don't hesitate to contact Avogadro Gas Services. Thank you Please How do I get your contact please. I am Onyebuchi by name. I want to install a 2.5tonnes gas plant here in Abuja. 08060751931 is my number. You can whatsapp me too |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by ThundrCork(m): 10:42am On Aug 26, 2015 |
Noted |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by laudate: 10:57am On Aug 26, 2015 |
johnstin: Guy, stop exaggerating. It is not hard for a gas station to be engulfed in flames. If you have ever seen drivers of LPG trucks involved in accident (that occurred due to no fault of theirs,') lose their lives .... you will never make this remark. If you have ever seen a gas tank or gas station go up in flames, you will think twice, before making this statement. Anything can set off a spark...even a mobile phone ringing. Then when you talk of gas leaks and the harmful effects.... you will not talk of LPG gas in such a nonchalant way. Not everyone should own a gas plant, or dabble into LPG gas business. It is not like kerosene or DPK, that you can wipe off, if there is a spill. 4 Likes |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by adiukuonyebuchi: 4:18am On Sep 09, 2015 |
[quote author=johnstin post=35835805] The reason the cost is frightening is because just a few companies/people are into the business of importing gas tanks and constructing gas plants at the moment. By the time more people venture into it, the cost of the project will invariably reduce. Our website will come on stream shortly. Meanwhile, I urge you to conduct more research into the business. You can start frequenting a gas station to see things for yourself. One more thing, because of the huge cost involved if you want to construct a standars gas plant - say 30 Tons, you can start processing your permits now provided you have some substantial amount now. You will need the following permits: 1. Police Report 2. Fire Planning Approval 3. Town Planning Permit 4. State Land and Physical Planning Permit 5. Department of Petroleum Resources License You need the following documents to process both the State L&P and DPR permits: 1. Environmental Impact Assessment 2. Mechanical Drawing 3. Architectural Drawing 4. Structural Drawing 5. Electrical Drawing You still need some more documents for the DPR license, which is the ultimate license needed to operate a gas plant. Please I am Onyebuchi by name. I live in Abuja. For a mini gas plant of say 3tonnes or 5tonnes, what are the requirements, if they are the same as above, How can one go about getting the requirements? |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 12:01am On Sep 10, 2015 |
[quote author=adiukuonyebuchi post=37817903][/quote] I will be in touch with you. |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by laudate: 12:00pm On Sep 11, 2015 |
Do you sell pressure relief valves? |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by hardeymijuh: 1:33pm On Sep 26, 2015 |
johnstin: @ Johnstin, I am interested in having one of the 2.5T LPG skid. Kindly drop all the information i need to know on edgepronig@yahoo.com. |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 1:38pm On Sep 26, 2015 |
hardeymijuh: I will do just that within 24 hours. |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by johnstin(m): 1:40pm On Sep 26, 2015 |
laudate: We can help you procure it and any other LPG fitting and component. |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by hardeymijuh: 2:33pm On Sep 26, 2015 |
johnstin: sorry the email is edgepronig@yahoo.com |
Re: The Highly Lucrative Lpg/cooking Gas Station Business by Fabbyboy: 11:44am On Sep 29, 2015 |
Hello please I am interested in this. But first I need to know the cost of licence from DPR... you can contact me on this number. 07065001983 1 Like |
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