Starting a cooking gas business is a good venture to go into as it has the potential to be lucrative and profitable when managed well and basic rules, requirements and safety measures are adhered to.
LAND/SPACE REQUIREMENT AND BUSINESS LOCATION 2024
The minimum land requirement to setup this LPG facility is 1 plot of Land. To decide on the best location to setup your mini refilling plant facility, consider a highly populated residential areas.
Being a bulky product, transportation of cooking gas can be costly and cumbersome.
Many consumers would prefer buying gas in their locality therefore, locate your business in a place not too far from residential areas.
Having determined the demand for cooking gas in the area, decide on the best location within the place for your business. Your ideal location will be an area with high traffic such as a busy road, street or street junction close to a market place.
As with any business venture, the location of your gas plant is very key. In the case of this one, it is most peculiar. A good place to locate your gas plant is in proximity of a sprawling residential area.
This is to ensure that you are not too far away from your target market. You do not want your customers to have to travel unnecessarily long distances to reach your business place.
Despite the fact that you should have proximity of the target market in mind, do not forget that you are dealing with a highly inflammable product. Hence you must also ensure that your intended location is not surrounded by residential buildings.
In Nigeria, all state governments have departments that have the responsibility of ensuring that such businesses are located where they will not be a hazard to the people. Typically, a gas plant in Lagos will make a lot of money because of the population of people there.
In a nutshell, while you are picking a location, ensure that it is not too far away from residential areas but also check with the authorities to make sure that you are also not too close.
Yes sourcing for a space or land could be difficult but it is very achievable if you work through housing agents. Tell them to source a space for you either in a filling station or outside. They would do the running around.
LICENSE
The company handling the installer of the plant usually takes care of procuring all required documentations and licenses involved in building or upgrading an LPG facility and working with Ministry of Energy and Minerals Resources to secure all required permit for your facility to
operate.
The permits includes:
- Town Planning
- Police Report
- Fire Service Report
- Environmental Impact Assessment report
- Nigerian Midstream and Downstream Petroleum Regulatory Authority, formally (DPR) Permit.
A single license can not be used to operate more than one plant. The cost of acquiring a license from state to state differs.
Click here to read full detail on: How To Start Cooking Gas (LPG) Distribution/Refilling Business With Little Capital In Nigeria and learn how to start this business on a small, medium and large scale.
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