HOW LPG ADOPTION TRANSFORMS ECONOMIES

The African economy has experienced a lot of growth since 2020. Yet there is still room for more improvement. This is especially true through facilitating the use of LPG across the continent of Africa. We explain this in detail in this informative article.

By Teslim Waheed

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HOW LPG ADOPTION TRANSFORMS ECONOMIES


Energy is a vital element of human life. Reliable access to sustainable, affordable, and modern energy plays a fundamental role in nations' social well-being and economic development. The use of traditional dirty-burning fuels such as coal, wood, and kerosene for cooking emits a high level of pollutants and carbon monoxide, which are the leading causes of house air pollution associated with adverse health effects. Experts added that continuous use of dirty fuels could lead to premature deaths, increased childhood and adult illnesses, attendant environmental issues and strain on the healthcare system. With the quest to search for cooking energy that would save our environment from pollution, Liquefied Petroleum Gas (LPG) was discovered. LPG is a form of energy using for cooking. It is manufactured by refining crude oil or raw natural gas derived exclusively from fossil fuel sources. It is stored and transported in LPG cylinders as a liquid under moderate pressure. The gases produced in the LPG production process are mainly propane and butane.
 
LPG is one of the most effective ways to minimise Africa's carbon footprint, and converting customers to it has resulted in significant cost savings for Africans. The ample supply, household choice, and local accessibility of LPG are associated with the product's increased acceptance rate in Nigeria. Nigeria and other African countries can save more than $774 billion by intensifying the use of Liquefied Petroleum Gas (LPG) as a cleaner cooking fuel alternative by 2030 if they reach 50% market penetration. The market for liquefied petroleum gas (LPG) is a paradigm shifter and game changer.
 
Despite rising LPG prices, the overall benefits of LPG as a crucial enabler for households and industry cannot be overstated. In terms of social advantages, these would include enhanced quality of life, mostly as a result of reduced human suffering. In terms of the economy, these include the savings in health-care expenses and productivity increases from fewer illnesses and fatalities, as well as the time saved obtaining traditional fuels and cooking with them. The entire economic advantages of switching half of the world's solid fuel users to LPG for cooking are anticipated to be roughly US$ 90 billion per year, compared to net intervention costs of just US$ 13 billion.
 
Without concerted action from governments and other stakeholders, the transition to LPG and other clean cooking fuels would remain unacceptably sluggish as wages rise. Without any policy changes, the number of people in developing countries who do not have access to clean cooking facilities in 2030 would be scarcely lower than in 2015, and the number of people who use LPG will only slowly climb from 1.1 to 1.3 billion.
 

 
Access to hygienic cooking facilities is improving at a different pace in different African countries. However, in Sub-Saharan Africa, where population growth has outpaced progress, progress has been gradual. For cooking, an estimated 84 percent of the population still uses solid biomass, coal, or kerosene. Traditional biomass is, unsurprisingly, most widely employed in rural locations, where access to economical contemporary forms of energy is most limited. For decades, as incomes have risen and availability to modern commercial energy services has expanded, a long-term transition away from solid fuels and toward LPG forms of energy for cooking has been occurring across the black countries. In some cases, supportive government action, including direct fuel subsidies, have helped to accelerate this process. At the initial stage in this process, there is a shift from wood fuel, straw and dung to charcoal and intermediate modern fuels such as kerosene and coal, as well as the deployment of more efficient biomass stoves. As incomes rise further, the use of LPG tends to expand. 
 

 
LPG is an important step in the shift to advanced contemporary fuels. At per capita household earnings of more than US$ 100 in Nigeria, this change is nearly complete. LPG may become available at greater levels of socioeconomic development as local distribution networks are established. LPG is still a popular choice for cooking and heating in many homes. In Nigeria, moving from traditional fuels such as kerosene to LPG often begins with the use of a cylinder connected to a simple burner. As people get more accustomed with LPG and their earnings rise, they may decide to install a modern cooker inside their home, potentially with gas supplied through rubber pipe from a cylinder outside or in a separate room.
 
The costs and advantages of switching fuels can be classified as expenses or benefits. The majority of the expenditures are tied to the initial cost of procuring the necessary equipment to cook with LPG, such as the stove, cylinder, pipe, and valve, as well as any related installation charges, as well as the cost of the LPG itself. Furthermore, there may be large costs associated with a programme aimed at increasing the use of LPG for cooking, which are often paid by the government or a donor – for example, advertising, information dissemination, education, and financing/credit programmes. The cost of maintenance is usually very low. There is also a global environmental cost associated with the emissions of greenhouse gases from burning LPG; however, switching to LPG is anticipated to result in less emissions on a net basis, because it lowers the use of unsustainable biomass and coal, which is far more carbon-intensive than LPG. Switching from solid fuels to LPG has a variety of social and economic benefits that help both the households that make the switch and the local, regional, and global communities. The most important are as follows: -
1.      Health-related benefits, such as increased quality of life due to less human suffering, lower health-related expenditure due to less illness, and the value of productivity increases due to less disease and fewer deaths.
2.      Time savings from reduced stress associated with collecting and processing biomass for use, which is typically done by women and children, as well as more efficient and speedy cooking and heating, which frees up time for other social and economic activities.
3.      Fuel savings from a more energy-efficient stove. The averted economic cost of environmental degradation caused by the use of solid fuels, such as reduced deforestation and higher agricultural output when agricultural leftovers and manure are utilised as fertiliser instead of fuel, as well as lower greenhouse gas and black carbon emissions.
4.      Switching from kerosene to LPG can also yield time savings. Washing the pots and pans used in cooking is faster when using LPG, as it does not blacken the pots as kerosene does. In addition, less time is spent (and less cost incurred) in cleaning and repainting the kitchen as a result of the soot produced by kerosene
5.      Other potential advantages of switching to cleaner fuels for cooking and heating include a higher quality of life. Users typically view a cleaner house due to reduced smoke, the prestige of possessing a modern stove, and its ease to be essential aspects, which can result in a perceived rise in their self-perception and social status (WHO, 2008). Household possessions and luxuries are a good indicator of a family's overall happiness. The transition to modern energy, of which the switch to LPG for cooking is a key component, can help to facilitate growth by enhancing many different aspects of quality of life.
 

 
LPG will continue to play a central role in the quest for access to modern energy for cooking. How quickly this will occur is uncertain, depending to a large degree on efforts by the public authorities and other stakeholders to intervene to speed up the process.Nigeria is the largest economy in Sub-Saharan Africa and is rich in natural resources such as oil, gas, hydropower, and solar energy. People in the country can take advantage of the low pricing to expand their cooking gas use as demand for local consumption grows. For economic reasons, environmental safety, convenience, or because it is the preferred fuel source, cooking gas is employed in many nations, including Nigeria. Nigerians' abrupt switch from filthy fuels like kerosene, firewood, and charcoal to a cleaner and more ecologically friendly source of energy, Liquefied Petroleum Gas (LPG), often known as cooking gas, may have opened up new investment prospects for Nigerian companies.
 
Nigerians' abrupt switch from dirty fuels like kerosene, firewood, and charcoal to a cleaner and more ecologically friendly source of energy, Liquefied Petroleum Gas (LPG), often known as cooking gas, may have opened up new investment prospects for Nigerian companies. Despite the fact that Nigeria still has the lowest per capita LPG consumption rate in the world (1.1 kilos), the Nigerian Liquefied Natural Gas (NLNG) has helped Nigerians embrace the use of LPG.
 
Prior to NLNG's entry into the local gas market, LPG was only used by the wealthy because the price was out of reach for the average person, as LPG was mostly imported with annual use. 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.
 
The DPR designs approval to ensure that the applicant for license to establish a gas plant facility understands the industry, the technical and economic implications of the project, the sociological and environmental impact of the plant, and maintenance provisions required to protect the health of the operating staff and safety of plant. 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. Now let us move on to setting up a gas plant.
 
Cooking gas is a location based business. Most times, it is advisable to conduct location assessment before applying for DPR approval. The reason is that if the location is rejected after approval, money paid to acquire the location including the payment for approval is wasted. 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.
 
Piping & Instrumentation, diagrams: There is need for detailed process configuration including Piping & Instrumentation, diagrams (P&ID) and Process Flow Diagrams (PFD), showing the detailed, Material Balance and feedstock composition/PVT data, electrical one-line diagram and equipment list, general facility layout diagram equipment, test procedures and final project implementation schedule.
 
Procurement for your Gas Plant: 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.
 
Fabrication: All fabrication and welding procedures shall generally follow the relevant specifications in the documents that include American Welding Society – Structural Welding Code A.W.S.D.1.1 88 and the subsequent revisions; API Standards 1104 – 17th and subsequent editions for welding of pipelines and related facilities; ASME Section VIII, Div. 1 & 2.

 
 
Environmental Protection: The gas plant shall be equipped with adequate provisions for containing and handling spills and accidental discharge of potential contaminants. All the systems and components of the gas plant shall be designed to withstand any anticipated extremes of environmental phenomena on location. The provision of effluent and recipient water quality monitoring shall be in accordance with the Environmental Guidelines and Standards issued by the Department of Petroleum Resources for the Petroleum Industry.
 
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.
 
 
 
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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Nigeria offers several investment opportunities in a variety of industries, including gas production, financial services, and real estate. The gas industries, as well as other industries, are growing, and new investment opportunities are emerging on a daily basis. New productive industries must be formed in order for our economy to grow. This will create jobs, raw materials for our businesses, physical growth, and, most importantly, self-sufficiency. Within the petrochemical business, Liquefied Petroleum Gas (LPG) presents a fantastic investment opportunity. The LPG business was created expressly to meet the country's industrial and domestic gas needs. LPG is required in practically every element of business. For example, the automotive industry, manufacturing plants, and thermal energy generation are all in high demand. On a residential level, most households, particularly those in the middle and higher classes, increasingly rely on gas for cooking. Since firewood and kerosene stoves are quickly becoming outdated, hotels, catering companies, restaurants, and bakeries all want LPG as an alternate source of energy.
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