Gas On Wheels

By: Gregory Righi (CEO)

Agenda
 Introduction
 The Company
 Our Services
 The Market
 Objectives
 Mission
 Keys to Success
 What is Gas on Wheels
 Transport
 The Products
 Market Analysis
 Advantage to Consumers
 Questions
Introduction
 The Company
 Gas On Wheels is a wholly owned indigenous Company that delivers liquefied petroleum gas to
homes and businesses. The Company intends to operate in all states of the federation.
 Our Services
 Gas on Wheels intends to deliver quality, highly demanded liquefied petroleum gas in a safe and
dependable manner.

 The Market
 Gas On Wheels’ target market strategy is based on becoming the company of choice for delivery
destination to homes and companies throughout Nigeria in need of LPG services. It will be located
in every viable part of the country. Although the business plans to sell nationwide, we would
initially commence with Lagos and expand thereafter to other states.
 Introduction (Continued)
Objectives
 Nigeria is said to be a gas country with an estimated reserve of 182 trillion cubic feet (Ministry of Petroleum). This will
generate employment, provide raw materials for our industries; generate physical development and above all self-
sufficiency.

 The Federal Government at the last African Summit of the World LP Gas Association, made a pronouncement that
Nigeria would develop cooking gas market from the current 250,000 metric tons to one million (1,000,000) metric tons
per annum by 2015.

 At the domestic level, most households particularly the middle and upper classes of the society now depend on gas for
cooking purposes. Hotels, catering outfits, restaurants and bakers all demand the LPG as an alternative source of energy
since the firewood and kerosene stove are fast becoming obsolete.

 The low patronage of LPG can be traced to lack of infrastructure in the distribution of LPG; bulk storage facilities are
inadequate in comparison to the ratio of potential domestic users.

Mission
 Gas On Wheels’ mission is to deliver quality liquefied petroleum gas to homes and offices at a reasonable cost
and install gas meter valves for numerous consumers.

Keys to Success
 Gas On Wheels key to success includes:
 First mover advantage
 Delivering liquefied petroleum gas (refill or top up)product to their client doorstep
 Low/affordable price
 Gas meter valves and servicing of accessories
 What is Gas on Wheels
 To ensure conversion from harmful biomass to Liquefied Petroleum Gas in homes and
businesses particularly in remote areas and communities. Our goal involves creating awareness
and showcasing liquefied petroleum gas as a cheaper, cleaner and healthier burning fuel.

 As many households are changing from the outmoded way of cooking (wood and kerosene),
our model would make it convenient and cheaper based on delivery service hence the right
option. We intend to service individuals in highly populated areas primarily and also small
businesses that require LPG as an energy source (bearing in mind that we deliver LPG to their
doorstep).

 Presently, we all go to fixed depots for refill, the convenience of having gas delivered cannot
be over emphasized; also the gas metered valves would ensure consumers can monitor their
refill levels and call us a day or so before. This also helps us plan logistics. The turnover
potential based on population density in various areas is enormous based on convenience of
delivery as well as a 33% profit margin expected.
 The price of kerosene is rising every day, to the extent that it has gone beyond the reach of
poor homes in the country. At the same time the price of cooking gas is decreasing. The
implication is that many homes are shifting from kerosene to LPG (cooking gas). With this
trend, the demand has increased tremendously and calls for more investment in this area.
 What is Gas on Wheels (cont.)
 Address the clean energy needs of millions of Nigerians
 Reduce exposure to smoke and other hazardous pollutants
 Create income opportunities, reduce cutting down of trees, climate
degradation
 We envisage creating jobs in their thousand all around Nigeria for both
men and women through direct employment and retail franchising of
the business model. Remuneration would be above the minimum wage
and margin from retail business would be above 20%.
Truck
Gas meter valve
The Product
 The required raw material for this project will be sourced 100 percent locally as a by-product of
petroleum refining activities. Thus, LPG would be sourced from independent marketers.
 As with NIPCO, many independent marketers import bulk of LPG Cooking gas to ensure regular
supply to small and medium scale gas bottling and marketing companies. Prospective investors can
now establish small and medium gas filling (bottling) and marketing businesses.
Market Analysis
 Nigeria is said to be a gas country with an estimated reserve of 182 trillion cubic feet (Ministry of Petroleum).
Nigeria has so many investment opportunities in various sectors; gas and oil, manufacturing, financial estates etc.
The gas and oil sector as well as other sectors are expanding and investment opportunities open up on daily basis.
For our economy to grow, new productive industries must be established. This will generate employment, provide
raw materials for our industries; generate physical development and above all self-sufficiency.

The Federal Government at the last African Summit of the World LP Gas Association, made a pronouncement that
Nigeria would develop cooking gas market from the current 250,000 metric tons to one million (1,000,000)
metric tons per annum by 2015. The Liquefied Petroleum Gas (LPG) offers a tremendous investment opportunity
within the petrochemical industry. The LPG is an industry specifically developed to cater for the nation’s industrial
and domestic gas requirements. LPG is needed in almost every aspect of economic activity. For instance, it is
highly demanded by the automotive industry, manufacturing plants and electricity generation via thermal energy.
 At the domestic level, most households particularly the middle and upper classes of the society now depend on gas
for cooking purposes. Hotels, catering outfits, restaurants and bakers all demand the LPG as an alternative source
of energy since the firewood and kerosene stove are fast becoming obsolete. 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 plants as the government has made this product available.

 The low patronage of LPG can be traced to lack of infrastructure in the distribution of LPG, bulk storage facilities
are inadequate in comparison to the ratio of potential domestic users.
Market Plan/Survey
Our plan is to take this model to the national level.
Year 1: Cater to residents and businesses in on the mainland primarily Ikeja, Ketu
and Isheri –Berger having a combined population of over 1million residents (Ikeja
313,000 and Kosofe 630,000 residents- 2006 census)
 Year 2-3: Cater for The whole of Lagos
 Year 4: Cater for South west – Ogun, Oyo etc..
 Years 5 Nationwide Coverage
Market survey - In the first year we will cover Berger, Ketu and Ikeja which
houses over 1 million people whereby over 65% use domestic gas for cooking due
to changes in life style as earlier mentioned. Having carried out a random case
study of what 3100 house wives in magodo phase 2 , Otedola estate and Isheri
about Gas OnWheels:
 62% said that they would subscribe to the service
 57% said that if and when operations commences and they are satisfied they
would recommend to their friends
 2% said they were not sure the service will commence
 1% said they either bought take outs or don’t live in the country
Advantage to Consumers
 Gas can be refill or top up of existing gas level
 Gas meter informs on refill level
 Healthier, Cleaner and cheaper burning fuel
 Convenience (as the gas is delivered to their doorstep)
 Stress free and cheaper (than driving around looking for a gas plant as we come to you the
consumer)
 Servicing cylinders, cookers and other clean cooking equipment.
 Tips on cylinder handling and storage, etc
Questions

Thank you