Change brings with it a plethora of opportunities for doing things completely differently and for policymakers and entrepreneurs to explore alternative fuel sources. LPG is one such alternative. LPG is a low-carbon, renewable combustion fuel that emits almost no black carbon and does not spill. Its use improves air quality, reduces GHG emissions, and protects the environment. It is utilized in transportation, the business sector, industry, agriculture, heating and cooking at home, and recreation. LPG may now be made available to anyone, anywhere, without requiring considerable infrastructure expenditure. Locally generated LPG is delivered by NLNG and stored at ports, primarily in Apapa, Lagos. In addition, imported LPG is kept in those ports (also referred to as depot). Wholesales then buy LPG from these depots and deliver it to the gas plants. The size of the gas plants varies, and this size decides whether they will exclusively service end customers or LPG retail outlets. The downstream sector is responsible for delivering gas to end customers. There are various aspects of the LPG industry in Nigeria. Depots, LPG wholesalers, and LPG retailers are examples of these. Cooking, transportation, heating homes, industries, LPG, flexibility, energy security, and low emissions are among the compelling economic, social, and environmental grounds for increased LPG adoption as part of the global energy shift.
STORAGE TERMINALS
The government strategy that ended the monopoly in the LPG storage terminal industry has resulted in an increase in the number of storage terminals. The value chain impact is still present; a rise in LPG demand will result in an expansion in supply infrastructure, including storage terminals. The Federal Government of Nigeria announced the LPG expansion program in 2019, with the goal of transitioning automobiles from their reliance on Premium Motor Spirit (PMS) and diesel to LPG. Another example of a favourable government policy is the elimination of VAT on LPG, which was intended to boost the product's affordability. The storage terminals are mostly located in Lagos State, with additional located in Delta, Rivers and Cross-River. These include NIPCO, Navgas, Matrix Energy, Prudent Energy and Services Limited, Stockgap, Dozzy group, 11 PLC and Kwale Hydro Plc. The Kwale Hydro Plc is the newest LPG storage depot among them. As a result, the majority of LPG entering Nigeria passes through Lagos State. According to a report, if the Port Harcourt and Calabar ports are fully operational, LPG trucking costs across the country might be lowered by up to 25%. The influence of the status quo may be observed in the fact that LPG prices in the South-South area are the highest in Nigeria. The prospective gaspreneur who wants to start an LPG depot business must set up a control room, quality control, a terminal, a tank farm, a truck loading farm, supply and distribution, a truck parking space, and a firefighting system. The following are some tips for setting up a terminal:
Control Room
The depot should be totally automated and built with as little human participation as possible. A network of flow meters should control the flow process, which includes the discharge from the vessel into the storage tanks, the loading of the tankers (which is done concurrently), the weight, and the volume disposed of.
Quality Control
To ensure safety, a laboratory facility for analyzing Flash Point, Density, Temperature, Viscosity, and other parameters should be available. This is required to ensure compliance with the NNPC/DPR-approved standard.
Tank Farm
The tank farm's cumulative capacity should be sufficient to store enough LPG to meet rising demand.
Truck Loading Farm
To avoid congestion and unnecessary delays, there should be a large enough space to accommodate numerous trucks that intend to load LPG at the same time.
Supply & Distribution
To respond quickly and efficiently to a wide range of consumer requests, efficient logistics and powerful distribution assets should be put in place.
Fire Fighting System
There should be a firefighting system that is promptly ready to put out a sudden fire.










LPG WHOLESALES BUSINESS
Ambitious entrepreneurs can apply to become super dealers for a large LPG marketing firm, which will collaborate with them in the sale of LPG cookers, fittings, and site installation in a specific zone. The terminal (Depot) will supply wholesalers with full gas cylinders in bulk at a reasonable wholesale price, which they will then sell at a reasonable profit margin and elect to sell at retail to double their profit. The company is at a competitive disadvantage as an emerging liquefied petroleum gas wholesale business startup since the company brand is just beginning to create an identity in the marketplace.
Unless you are really committed to the idea of a startup, you can avoid the time required to build a brand identification by purchasing a business with an established brand. As a startup, your best bet is to gradually build brand awareness over months and years. An LPG wholesale business acquisition, on the other hand, can place one at the helm of a brand that is already well-known in the target market.







If the feasibility assessment of the region is carried up by a specialist in the LPG rather than going it alone, the chances of becoming a successful entrepreneur are increased. If you're thinking about beginning a liquefied petroleum gas wholesale business, it's a good idea to see if there are any suitable franchise possibilities available that could help you get started faster. As a super dealer, you must ensure that you have enough complete gas cylinder stock at all times to meet client orders immediately. To ensure effective supply, at least one supply truck should be present. The basic truth is that the initial money required to establish an LPG wholesale distribution firm is substantial. However, with an excellent business plan and feasibility study, it is much easier to secure the assistance of both investors and financial institutions.
LPG RETAIL BUSINESS
The usage of liquefied petroleum gas is becoming increasingly essential in Nigeria, particularly now that the government is advocating for the use of Autogas. Previously, LPG was only used in the kitchen and for other large-scale industrial applications. There is a desperate demand for it right now. There is a money-making potential in this entire situation, and you cannot afford to pass it up. If you've ever considered establishing a retail business, you should give it a go today, at least on a modest scale. This is due not just to the fact that everyone cooks, but also to the fact that next-generation automobiles are built to use it.
As a retailer dealing in the sale of LPG in a certain location, you have a better chance of reaching more customers because services are closer to end consumers, making you the best alternative for them when it comes to proximity to the Gas market. In essence, the retailer serves as a profitable link between a huge gas plant and its buyers. Before starting a business as a retailer, it is necessary to go through training to at least obtain the fundamental safety precautions. Some of the topics covered include, but are not limited to, how to detect and repair leaks in gas cylinders, how to weigh cylinders of various sizes using a scale, how to properly refill gas cylinders such as 3kg, 12.5kg, 6kg, 13kg, 5kg, 50kg, and 25kg, and how to charge for prices of any custom quantity that customers may request. The Retail sub-division is rapidly extending its reach and client base across the country, with the objective of being the preferred market leader in delivering refined petroleum products to consumers across the country.
The safety recommendations gained during training days will aid in the selection of a safe location for business. Because gas can cause environmental risks, launching in a cool, dry location with strong demand is critical. Training will aid in the accurate measurement of gases in tons, kilos, or litres. LPG purchased for resale is stored in tanks or 50kg cylinders before being sold in smaller quantities to customers who keep it in 12.5kg, 6kg, or 3kg cylinders.
A typical LPG retail business may incur expenses such as funding to establish a new business, renting a shop, and purchasing operational materials such as tanks, cylinders, scales, transfer hoses, and other tools. A significant sum of money will be required to purchase the product (gas) and transfer it directly to the retail business. In any case, the typical cost of beginning a retail LPG distribution business is between 290,000 and 390,000 NGN. Some people may be put off by the prospect of starting a gas refilling business because someone they know has failed miserably. People are smiling to the bank functioning as LPG Suppliers, despite the fact that it may be depressing.
Locating business closer to customers and then increasing the advertising budget will help solve the issue. Whether they realize it or not, the majority of Nigerians in metropolitan areas (if not all) use LPG to cook. That number is steadily increasing, and now is your time to profit. All you have to do is do a market study (research) to find out when LPG is in great demand, who or what class of individuals requests it, and where they are concentrated. The information you've gathered thus far will help you choose a profitable site, one that will provide you with a constant market for gas and its accessories. In reality, it is preferable to locate in a virgin place with a good level of daily demand and then utilize advertising to fill in any gaps. Advertising is never-ending and never-ending. Some clients have yet to form a strong bond with any LPG provider. It is your responsibility to approach them with enticing offers such as first-time purchase discounts or an offer to pick up their cylinders, refill them, and return them to them. The working class would fall for it, and you'd be laughing all the way to the bank.











Conclusion
There is money to be made in the gas distribution business in Nigeria right now, this advantage can be taken with a little hard work. It all entails learning the ropes of the business, getting the help of specialists, conducting research and analysis, securing funding, and conducting feasibility studies. Most aspiring gaspreneurs are intimidated by the prospect of obtaining an LPG feasibility study and quality equipment. A solid LPG feasibility study acts as a reality check, comparing your business instincts to those of your competitors. The backend of business planning requirements is a feasibility analysis of the LPG company strategy while procuring quality LPG equipment retains your confidence about safety and efficiency.
In most cases, tracking tools are incorporated into the company's launch plan in order to run a successful LPG business. It is a wise decision to learn as much as possible from a respected company that has created a landmark in the industry as part of due diligence on launching an LPG depot, wholesale, and retail business. You're being overconfident if you believe your local competitors will provide you with technical advice. Why would they want to educate a competitor in the future? As long as they do not perceive a competitive danger, an owner of an LPG business in another town, city, state, or country may be more than pleased to provide thorough advice.
KiakiaGas Limited is a leading Gas business in Lagos, Nigeria with expertise in LPG retailing, New Gas Market development, Building of Gas Plants and Gas strategy advisory. Supply by KiakiaGas provides LPG products and equipment for corporate and institutional clients for the project and operational needs. If you need a partner with hands-on local expertise in the Nigerian and African Gas space or any of our bespoke solutions/services, kindly visit www.kiakiagas.com to learn more.