Why is LPG feasibility studies important for your LPG business?

The domestic liquefied petroleum gas filling sub-sector of Africa's Oil and Gas Industry has undeniably large investment potential. For cooking, a high majority of people in the middle and upper socioeconomic classes rely on gas. Industries, government institutions, hotels, hospitals, restaurants, bakeries, and a variety of other businesses are all affected. The distribution of gas products has been deregulated in response to the enormous demand for LPG in Africa and the resulting scarcity of the product, which has resulted in dramatic and arbitrary price hikes. As a result, private individuals and businesses can now build LPG facilities. As a result, a feasibility study is required to serve as a guide for beginning the LPG feasibility research.

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Why is LPG feasibility studies important for your LPG business?


The domestic liquefied petroleum gas filling sub-sector of Africa's Oil and Gas Industry has undeniably large investment potential. For cooking, a high majority of people in the middle and upper socioeconomic classes rely on gas. Industries, government institutions, hotels, hospitals, restaurants, bakeries, and a variety of other businesses are all affected. The distribution of gas products has been deregulated in response to the enormous demand for LPG in Africa and the resulting scarcity of the product, which has resulted in dramatic and arbitrary price hikes. As a result, private individuals and businesses can now build LPG facilities. As a result, a feasibility study is required to serve as a guide for beginning the LPG feasibility research.
A feasibility study examines all of a project's pertinent aspects, including economic, technical, legal, and scheduling issues, to determine the project's chances of success. Several elements influence whether a project is practical, including the project's cost and return on investment, or whether the initiative earned sufficient money or sales from consumers. A feasibility study, on the other hand, isn't just for projects that want to measure and estimate financial gains. In other words, depending on the industry and the project's purpose, practicality can mean different things. A feasibility study, for example, could determine if a liquefied petroleum gas plant can generate enough funds through cooking gas sales and sales of gas equipment to increase the return on investment (ROI). A feasibility study determines if a proposal or project is feasible. A feasibility study examines a project's viability to see if it has a chance of succeeding. The research will also look for any challenges and problems that may occur as a result of the project's implementation.
There has never been a better time to invest in cooking gas, as the demand is expected to rise by 125 percent over the next five years. Investment opportunities abound around the value chain, but investment conditions differ. When one shifts from the upstream to the downstream sector of the industry, the investment and regulatory criteria for market entry in the value chain decrease. In comparison to an investor whose planned investments are at earlier stages of the value chain, an investor who wishes to enter the retailing of LPG will more quickly enter the market and begin operations immediately. Any company wishing to participate in the LPG distribution market must register with the Nigerian Corporate Affairs Commission (CAC), which is responsible for the “regulation and supervision of the formation, incorporation, management, and winding up of companies,” among other things. The registration of an oil or gas company as a private limited

Despite the vast investment prospects available in this industry, one area that remains relatively untouched is LPG plant investment. While investment in other sectors of the value chain, such as retail, gas accessories, and parts, is at an all-time low, LPG investment is at an all-time low. As can be seen on every street corner, the cooking gas business is a viable one. Given the strong competition, you might ask how they earn a profit. The good news is that as more people adopt this fuel, more customers will emerge. It is thus important to notice the establishment of a gas plant to suit Nigeria's growing demand for cooking gas. The time it takes to build up LPG facilities varies; it usually takes around 24 months or more, depending on the Department of Petroleum Resources' (DPR) licensing process.
This process might look complicated, however, with our knowledge, experience and cordial relationship with the DPR officials, Kiakiagas will easily get all the required papers for you while saving your resources and without you going through the stress. Kiakiagas possess LPG implementation skills with which you can have your papers and other necessary document that back up your propose LPG plant from not only the DPR but also other LPG regulating government agencies. Kiakiagas will guide and direct you to the next point of action after acquiring the necessary papers. We are good at what we do and we do not abandon our clients or upcoming entrepreneur in the field of LPG. Our reputation speaks for us in the gas industry.
 
Why is LPG feasibility studies important for your LPG business?
Uncertainty is a constant that all businesses encounter on a daily basis. Getting consumers in the door, persuading them to spend, and eventually making a profit are all basic goals that might be tough to execute at times. Changing, adapting, and introducing new products and ideas into your business mix are all ways to mitigate some of the risks, but without adequate foresight and planning, those activities can be quite risky. Enter the feasibility study: an opportunity to ask and receive answers to questions that will help you evaluate potential and predict success or failure.
The phrase "feasible" refers to an action or event that is "likely," "likely," or "possible" to occur. A feasibility study is a collection of actions and questions used to establish whether an idea, thinking, or strategy has a good chance of succeeding. An effective study can help you decide if you should pursue your idea, refine it, or abandon it entirely and return to the drawing board. Feasibility studies are specific and targeted. They start with a single question - if the concept, event, or action is a viable solution – and compel you to focus entirely on that subject, digging down to investigate various outcomes.
 

 
A feasibility study and a business strategy are not the same thing. A feasibility study is a tool for research that may lead you to dismiss an idea, whereas a business plan is a call to action. In fact, a feasibility study can be used as a precursor to writing a business plan. Feasibility studies are useful because they push you to think about the large picture first and then think top-down. As a result, one or two broad starter questions lead to a slew of more specific follow-up questions that become increasingly focused as you approach closer to a final answer. There are cooking gas plants in the cities as they are noticed by the road side but free from residential area. We just give you another reason to invite our team of experts at Kiakiagas to guide and put you through on the choice of location. We embark on the use of our vast experience in choosing a location that you may consider as high selling point. Our team of researchers will mediate between you and DPR to get you a suitable and LPG marketable location that will be free from the DPR sanction.
Asking whether anyone will buy your LPG product and whether it will make a profit, for example, raises further questions that require you to think about customer need, potential competition, and potential hazards. You must also define your target market, describe your LPG product and its benefits, and determine cost, break-even, and profit points.
Feasibility studies allow you to "get it right" before investing time, money, and business resources into a LPG concept that may or may not work out as you had hoped, forcing you to invest even more to repair defects, remove limits, and then try again. Feasibility studies can also help you see fresh options, opportunities, and solutions that you might not have explored otherwise. There are no right or incorrect answers to your queries, but a response you didn't expect or want can open up new earning opportunities.
The choice to proceed with the LPG business is one of the main objectives of the feasibility study. Because all LPG business-related factors are included, a clear picture of the many aspects is generated. Due to the limited nature of resources, it is critical to ensure that they are used effectively. The most advantageous path should be chosen since valuable resources are not only saved from being wasted on ineffective projects, but are also invested in more profitable ones in the future. A LPG company avoids losses by determining whether or not to pursue a new initiative based on how the return is weighed against the LPG investment.
The feasibility analysis outlines all of the LPG business's potential constraints as a consequence of the investigation. Monetary, technical, resource-related, technological, financial, marketing, logistical, legal, and environmental restraints are only a few examples. Estimating these limitations gives you a clear picture of all the problem areas where the LPG project can run into problems in the future, as well as their primary causes.

A significant amount of money and valuable resources are invested in a single LPG project. These must be utilized to the fullest extent possible. A feasibility study lays out the whole course that the LPG project could take. It contains crucial information such as financial estimates. It is only prudent to choose the business idea or project that will be the most long-lasting and will withstand future financial dangers.
Another important aspect is the support system required for the LPG firm to run smoothly. It's possible to find differences in logistical alternatives. It aids in the discovery of available resources in terms of labour, materials, and related technology. The firm's technological resources are evaluated for their potential. An evaluation of the technical team's abilities is carried out. Any flaws are investigated, as well as potential solutions. It also entails a review of critical systems, such as hardware, software, and technological needs for the entire system. Untimely replacement of LPG equipment, such as gas pumps and dispensing equipment, might be inconvenient and irritating. This is true if you have not yet had the opportunity to purchase gas pumps and dispense equipment from Kiakiagas, a company that sells gas pumps and dispense equipment and is linked with the imported gas pump and dispense equipment manufacturers. Casper and other associated American companies are among the affiliated companies. You will stay compliant and up to date with a gas pump and dispense equipment laws by using Kiakiagas' convenience store services for gas pumps and dispense equipment. We help you get the gas pumps, dispensing equipment, and hardware you need to stay in compliance with a gas pump and dispense equipment license.
The market feasibility is an important aspect of the feasibility research. This section contains all of the relevant industry information. Important information is acquired, such as the industry's size, retail value, and trends. The specific market is also examined, as well as the market's future potential. To ensure the LPG business's success, a thorough assessment is essential. The competitive environment has also been prepared. As a result, the company chooses the best strategy for positioning itself against the competition. In order to determine how and where a cooking gas plant should be built, the DPR, as the federal government's regulatory authority, must be consulted, as well as an expert in the subject. The Kiakiagas Nigeria Limited, which has a solid reputation for establishing gas plants that include not only LPG but also CNG/LNG, auto gas, oxygen plants, and shipping, is the proper and finest option to consider. Our crew is up to the task, and we follow the DPR's instructions by using imported goods. Our staff has undergone extensive training to ensure that installations are carried out using the most up-to-date technology. We can also assist you in obtaining the appropriate permissions and ensuring that all gas pumps and dispensing systems are approved and tested extensively. Kiakiagas is a one-stop-shop for all things gas, from pipeline to pump. As an added bonus for convenience stores, Kiakiagas carries leading gas pump and dispense equipment manufacturers such as Casper.

The LPG description is also determined. All of the possibilities are reviewed and analysed in order to select the most profitable option. A profile of possible LPG customers is created, as well as an assessment of the LPG market's size in terms of potential LPG buyers. Sales estimates of the LPG can be estimated with the help of previous data. The target audience's various places are investigated, and the most beneficial audience and location may be chosen. The suggested target audience's level of acceptability of the delivery can be determined. It guarantees that the correct product is created for the correct customers. Pricing decisions and tactics are made. It guides decision-makers toward finding the most advantageous possibilities.
Establishing LPG plant cooking gas business is very profitable and you don’t have to break the bank before you can start. You will get your business set up and ready to go with almost everything necessary in place I guided by the Kiakiagas. And this is a big business that anyone who is into it can be proud of. But beyond the financial requirement needed to establish an LPG plant, there are statutory regulatory guidelines that must be met before license can be issued
 
Kiakiagas Limited is a leading Gas business in Lagos, Nigeria with expertise in commercial gas pump and dispenses equipment, 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 Gas space or any of our bespoke solutions/services, kindly Mail hello@kiakiagas.com to learn more.to learn more.

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