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Operator opens up on best way to invest in LPG in Nigeria

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An investor has given elaborate details on how best to invest in supply and distribution of LPG in any state or city across the federation with ease. The company also said studies have shown that the investment is laced with high chances of early return on investment.

In an interview with the chief executive officer of the company, (name with held), he explained that “The LPG market in Nigeria is worth over $25b if we can tap up to one million metric tons annually”.

“So far, Nigeria is yet to tap up to 450MT annually. If you look at Ghana which has a population of about 35 million,  it is consuming over 900MT of LPG on a yearly basis.

“Here in Nigeria, we are over 180 million, but only scratching about 450MT on a yearly basis which shows that the market is here and the resources are equally here what is remaining is just the investment and Skid gas experts  have all it takes to guide any investor willing to do the business with ease.

The expert therefore called for more investors who are willing to have skid plant (that is plants that are mobile in nature that can be moved from place to place like a modular platform), to service the huge Nigerian market.

According to him, “Nigeria needs more investors in the sector and no investor can have any form of fear as the market is here waiting to be tapped”.

“Besides, time has come for the government to create more enabling environment that will encourage investors so as to bring the LPG to the streets where every household can have easy and seamless access. This will help protect our environment as it will discourage logging for fuelwood.

The expert further averred that “It was regrettable that some years ago, it was reported that the federal government imported kerosene stove worth over N9bn in a country that has the highest reserve of LPG”

He argued that such huge fund would have been channeled into the development of LPG and even subsidization of cost of filling gas for some class of Nigerians especially the poor and vulnerable so that they can stop onslaughts on the endangered Nigerian forest resources when the country is the most blessed in terms of gas reserves in the continent.

Explaining more on the key roles of Skid gas operators, the expert revealed that his group is ready to guide any investor to set up his or her Skid Plant in any part of the country so as to drive the massive usage of LPG in cooking.

He said “Nigeria has only achieved about 15% of its LPG market potential. We have a long way to go and LPG cylinders skid refilling plants is needed to bring closer gas closer to the consumers and retailers. We manufacture Mini LPG cylinder refilling plants and deliver to any location in Nigeria. These plants are mobile and easy to operate. This type of refilling plants requires very small piece of land/space and they can be easily relocated to a more profitable location. The plants also have over 20 years operating life span”.

Giving additional insights on how Skid plant works, the investor averred that “The skid package is in essence a turnkey/Modular LPG cylinder refilling plant. Once delivered, the skid unit only requires that you fill the tank and connect to electrical service and it’s ready for production. Skid type LPG cylinders refilling plants have almost the same features with the stationary type refilling plants. They are ideal solutions when entering/testing new markets and rebuilding/renovating existing plants. LPG retailers that are unsure about a new plant location might consider using a skid package that can be re-located if the need arises and skids don’t always require a concrete foundation.

“Our LPG skid consists of a storage vessel (tank), bulkhead, valve package, piping package, pump with electric motor and shutdown system all self-contained on a skid or frame. The bulkhead typically serves a dual-purpose by providing for transport unloading and bobtail loading. Our skid systems come with a pump & electric motor for handling bobtail duties & gas dispensing. The skid packages are customization and can be configured with dual bulkheads, compressors, cylinder-fill, auto-fill and other systems.

he made it clear that “They are easy and safe to operate,” saying “The skid systems can be equipped with gas detectors and gas alarm equipment for safety. The disadvantage of skid system is that they are open to environmental conditions so the tanks might need repainting yearly”.

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