PROFILE ON LPG CYLINDER

INTRODUCTION:

LPG Cylinder is an essential item for filling liquefied petroleum gas used for
cooling purpose. The body of LPG cylinder is deep drawn in two pieces then these
are welded together to make a compact unit without any leak and defect etc. LPG
cylinders are in use in 5 Kg., 12 Kg., 14.2 Kg. & 19 Kg. capacities. To ascertain the
quality, safety and performance certain regulations are applicable such as BIS
standardization and Explosive License etc. All the cylinders are spray-painted. The
cylinders carry their complete history with regard to their serial number, Tare/ Gross
weight, water capacity, ISE monogram test date, manufacturer identification and year of
manufacturing.
(i) Market:

Nigeria has about 186 trillion cubic feet of gas but is ironically among the lowest
consumers of LPG in Africa. The federal government has been leading a
spirited campaign to revive LPG business in Nigeria and recently summoned
the International Oil Companies (IOCs), and handed them a six month
ultimatum to make cooking gas available and affordable in Nigeria.
Following this determination of the federal government to maximize the nation's
gas potentials and get Nigerians to adopt LPG as their primary energy for
cooking, a retinue of new players are now positioning and repositioning in the
steadily returning Liquefied Petroleum Gas (LPG) market. Growing the LPG
market in Nigeria is a critical component of the nation's Gas Master Plan and
market watchers say government's efforts have begun to yield fruits. A lot of
new investments are now coming into the domestic cooking gas market.
Market watchers say cylinders can be used to grow Nigerian gas market as the
entire country of 140 million people is estimated to have about 500,000
cylinders only, most of them old, dilapidated and therefore dangerous.
Millions of Nigerians abandoned the use of cooking gas in the 1990s became it
was too costy and not available all the time. But as part of Nigeria's efforts to
develop her estimated 186 trillion standard cubic feet of gas (tscf) reserves, re-
invigoration of the use of cooking gas is an important aspect of Nigeria's gas
master plan. Strategies are now being stimulated to make gas available to
Nigerians at highly reduced prices while NLNG, prodded by the federal
government has domiciled 150,000 metric tons of LPG for the domestic market.
Chimons, Hyson, Linetrale and Harig are among the 6 off- takers that receive
gas directly from the NLNG plant at Bonny.
The average consumption is about 70,000 metric tons which makes Nigeria the
least in Africa. Even Benin Republic consumes more LPG than Nigeria per
capital. And this is what we want to change. We are trying to meet the target set
by the federal government to attain the level of one million tons in the next five
years by 2014.
As it was mentioned earlier we will find that there is a huge demand for LPG
cylinder in the next 10 years minimum to cover the grow of the market and later
big demand due to the natural grow of population ,change of very old
cylinders ,and more people will use LPG in their life.

Basis & Presumption:

1) It has been assumed to work 2700 hours per annum at minimum 80%
working efficiency on single shift working.
2) A period of 1 year after commencing the commercial production has been
considered for achieving full/ envisaged capacity.
3)Labor wages has been considered as per the prevailing market
rates and the minimum wages fixed by theauthorities.
4) The cost of building has been calculated as per the prevailing market
prices and these rates likely to vary from place to place.

Implementation Schedule:
The following activities are required to be completed during the
implementation schedule:
1 Preparation of company paper 12 weeks

2 Building Factory 30 weeks

3 Purchase & Delivery of machinery 26 weeks

4 Installation of machinery 4 weeks

5 Recruitment of manpower 3 weeks

6 Trial Run 1 weeks

*Approximate Overall Time 1 year

*Since some activities can be done in the same time

PRODUCTION CAPACITY:
Total turnover with the proposed plant and machinery will be of the
order of $. per annum.
Approximately 500 KW motive power will be required.
Manufacturing of LPG cylinder does not pose any major problem of
pollution. However, it is suggested that due care should be taken in
installing suitable air cleaning systems such as exhaust etc. in
sufficient numbers particularly in painting area.