Benefits of LPG Reticulation (distribution of gas with pipes) for Corporate Organizations
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Comment(s)
- Author:
Muyiwa Ige(LPG Stakeholder and Consultant)
There are colossal benefits in the installation of LPG Reticulation (Cooking Gas supply to cooking appliances via piping) for the kitchens of Multi-national companies, big corporations, manufacturing firms, Large Service Providers and Large Industries
LPG Reticulation eliminates the stress of hauling an LPG (Cooking Gas) cylinder to a gas station for refill on a frequent basis, cost of transporting the cylinder to and from the gas station, the comparatively higher cost of the gas procured from the gas station and the disappointment that sometimes occur when gas is unavailable at the gas station or a problem occurs in transit.
Cost Benefits of Piping Gas to the Kitchens of Big Corporations and Firms
Using Lagos for this case study, the average price of a kg of gas in an LPG Station is N570 (as at 16/06/2023).
P.S For LPG Reticulation, a gas truck will bring in the supply to fill the LPG tank installed on the premises.
With LPG Reticulation, the landing cost of a kg of gas is N515.
For instance, we can assume the kitchen of a large Service Provider or big Corporation consumes 400 kg of gas on a daily basis:
- Refilling eight 50kg gas cylinders at the gas station: 400kg x N570 = N228,000
- Average cost of transporting the gas cylinder(s) to and from the gas station: N6,000
- Landing cost of 400kg of gas using eight 50kg cylinders: N228,000+N6,000 = N234,000
- Recall that the landing cost of a kg of gas supplied by an LPG Tanker is: N515
- Therefore, the landing cost of 400kg of gas for an LPG Reticulation System supplied by an LPG Tanker is: N515 x 400kg = N206,000
- With a daily consumption of 400kg of Gas
- Daily savings using LPG Reticulation is: N234,000– N206,000 = N28,000
- Monthly Savings( 30 Days) using LPG Reticulation: N1375 x 30 = N840,000
- Yearly Savings using LPG Reticulation: N41,250 x 12 = N10,080,000
Other advantages of LPG Reticulation for the Big Corporations, Large Service Providers and Firms
• The quantity of gas in the tank can be monitored via the liquid level gauge on the tank. This means your gas will not get exhausted suddenly without notice; which is something that usually occurs with gas cylinders.
• The logistics and associated challenges of moving gas cylinders to the gas station for refill will be eliminated.
• There will be constant availability of gas for cooking needs, as long as the tank’s gauge is monitored often, and orders for restocking the gas are placed at optimal intervals.
• A well installed LPG Reticulation system is generally safer than the gas cylinder usage option.
• It helps you to better manage space in your premises by freeing up the area otherwise reserved for gas cylinder storage.
LPG Reticulation Installation
An LPG (Cooking Gas) tank of 1.5 Metric Tons, 2.5 Metric Tons or 5 Tons, with all the necessary fittings, such as a Liquid Level LPG Gauge, Pressure Gauge, Tank Filler Valve, Vapor Vent Valve and Pressure Relief Valve, is installed aboveground or underground, and connected with steel pipes to the kitchen/cooking area. All requisite controls such as gas valve and regulators, are professionally installed in the pipe network.
Safety of the LPG Reticulation System
A professionally installed LPG tank and piping works guarantees a high level of safety. A well trained operator of the Gas Reticulation system also gives a strong assurance of safety.
Fire extinguishers, CO2, smoke detectors and gas leak detectors, made available at the facility, provide safety assurance for the LPG Reticulation System.
LPG Reticulation System Regulatory Agency
The Nigerian Midstream and Downstream Regulatory Authority is the government agency assigned the onus of granting approval for LPG Reticulation Systems.
LPG Reticulation System Installer
Contact Niglpgas.com for the best LPG Reticulation (Cooking Gas Piping) installation companies in Nigeria.