Liquefied Petroleum Gas (LPG), commonly known as autogas when used as vehicle fuel, is  gaining  significant attention and adoption in Nigeria. This clean and environmentally friendly alternative to traditional fuels has become a crucial aspect of the nation's efforts to diversify its energy sources and reduce environmental impact.
Growth and Adoption: Over the past few years, Nigeria has experienced a notable surge in the adoption of LPG as auto-gas. This growth can be attributed to government initiatives, private sector investments, and a rising awareness of the benefits associated with auto gas use. Many vehicles, including taxis, buses, and private cars, have been converted to run on autogas.
A statistic for the country some years ago showed that a mere 5% of the consumption potentials of LPG were attained. It is therefore evident that we have a long way to saturate the Nigeria LPG Market if it were to be fully developed because if a domestic consumer is sure of getting LPG when and where he needs it at the right price, he would most willingly convert from firewood, coal or kerosene to LPG.
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.
Nigeria consumed 840,594.37 MT LPG in 2019, indicating an increase of 60.5 per cent over 635,452.061MT, Nigeria now ranks among the highest liquefied petroleum gas consuming states in Africa.
Today, Nigeria consumes about 1,000,000 MT 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 200 million people makes investment in LPG Bulk Storage 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.
Following the unprecedented demand for LPG in Nigeria and attendant scarcity of the product which has resulted in sharp and arbitrary price increases, the distribution of gas products has been deregulated. Consequently, private individuals and firms can now set up LPG investments in its value chain.
This Feasibility report highlights the step-by-step procedure required for the setting up of a Liquefied Petroleum Gas Re- filling station in any viable location in Nigeria.