Liquefied Petroleum Gas (LPG) is used as fuel for cooking and heating in the manufacturing Industry. it is also used for power generation .
LPG is a derivative of two large energy industries: natural gas processing and crude oil refining. When natural gas is extracted from the earth, it is a mixture of several gases and liquids. Methane, which is sold by gas utilities as “natural gas” constitutes about 90 percent of this mixture. Of the remaining 10 percent, 5 percent is propane and 5 percent is other gases such as butane and ethane.
Before natural gas can be transported or used, the LP Gases (which are slightly heavier than methane, the major component of natural gas) are separated out. Depending on the “wetness” of a producing gas field, gas liquids generally contain 1%-3% of the unprocessed gas stream. Some LP Gases are also trapped in crude oil. In order to stabilize the crude oil for pipeline or tanker distribution, these “associated” or “natural gases” are further processed into LP Gas.
Worldwide, gas processing is a source of approximately 60% of LP Gas produced.
In crude oil refining, the LP Gases are the first products produced on the way to making the heavier fuels such as diesel, jet fuel, fuel oil, and gasoline. Roughly 3% of a typical barrel of crude oil is refined into LP Gas although as much as 40% of a barrel could be converted into LP Gas. Worldwide, crude oil refining is the source for the other 40% of LP Gas supplies although the ratio between gas processing and refining varies among Petroleum producing countries.
LP Gas production from these sources is a natural derivative. That means production of LP Gas is assured since the primary motive for gas processors and refiners is to produce fuels other than LP Gas but first the LP Gases are produced Although tied to the production of natural gas and crude oil, LP Gas has its own distinct marketing advantages and can perform nearly every fuel function of the primary fuels from which it is derived.
With huge gas reserves of 185 trillion cubic feet and the Nigerian government’s strong commitment to developing the gas industry through the Gas Master Plan, there are a lot of emerging opportunities for investors in the sub- sector
With less than one kilogram me per capita consumption, Nigeria ranks among the lowest liquefied petroleum gas consuming states in Africa despite its huge gas resources.
Although, the market is currently fraught with decayed infrastructure, the five- year growth projection of the Federal Government, according to experts, will attract investment across the LPG value chain from storage, logistics, to filling plants and cylinders, among others.
The need to increase LPG consumption in Nigeria cannot be ignored by anyone because of the country’s large latent demand potential and population.
Today, Nigeria consumes about 110, 000MT per annum and we have about 130 LPG plants and 7,000 retailing outlets. If we can move the consumption level up to 750,000MT per annum, we expect to have about 250 LPG plants and 74,970 retailing outlets.”
More succinctly, a captive market of over 165 million people makes investment in LPG bottling plant viable since one of the challenges the Federal Government as well as LPG operators are forced to grapple with is how to popularize the use of cooking gas in Nigeria therefore , forward thinking investors interested in the Nigerian oil and gas industry will make money from building cooking gas filling plants because LPG is a domestic product that will eventually replace kerosene in the country due to its environmental friendly nature.
Investment in LPG Bulk storage is one of the numerous investment opportunities in the LPG value chain as sub- distributors ( re-filling plant owners) with bullet truck must purchase from bulk traders .
Soyemi Emmanuel A.
Please furnish us with the price Quotations of supplying a 10000litr tank of LPG to Ijebu Ogun State for our consideration
Please where can one buy LPG to retail, which are the organization or body to meet or register as a distributor