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Gas Station Business Plan PDF Example

• March 5, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful gas station. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your gas station’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a gas station business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the retail industry, this guide, complete with a business plan example, lays the groundwork for turning your gas station concept into reality. Let’s dive in!

Our gas station business plan is meticulously designed to cover all critical aspects necessary for a comprehensive operational strategy. It outlines the gas station’s operational framework, marketing strategies , industry landscape, competitive analysis , organizational management, and financial projections.

• Executive Summary : Provides a concise overview of the gas station’s business model, market evaluation, leadership structure, and financial strategy.
• Facility & Location: Describes the gas station’s strategic positioning, layout, and accessibility to potential customers, emphasizing convenience and high-traffic location advantages.
• Operations & Prices: Lists the services offered by the gas station, including fuel types, pricing strategy , and additional amenities such as a convenience store.
• Key Stats: Provides important statistics on the size and growth of the gas station industry, underscoring the business’s potential within the market.
• Key Trends: Highlights significant trends influencing the gas station sector, such as the rise in electric vehicle charging stations and the focus on convenience and retail offerings.
• Key Competitors: Examines primary competitors in the vicinity, outlining how the gas station differentiates itself from them.
• SWOT: A thorough Strengths, Weaknesses, Opportunities, and Threats analysis, offering strategic insights for business growth.
• Marketing Plan : Outlines marketing strategies aimed at building brand visibility, attracting customers, and enhancing customer loyalty.
• Timeline : Sets forth key milestones and objectives, charting the path from the initial setup through the first year of operation.
• Management: Details the team leading the gas station, highlighting their roles, expertise.
• Financial Plan: Projects the gas station’s financial performance over the next five years, including revenue streams, profit margins, and anticipated expenses.

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Executive Summary

The Executive Summary introduces your gas station’s business plan, providing a concise overview of your station and its offerings. It should detail your market positioning, the range of fuel options, convenience store products, and any additional services such as car washes or auto maintenance that you offer, along with its location, size, and a summary of daily operations.

This section should also delve into how your gas station will fit into the local market, including an analysis of the number of direct competitors within the area, identifying who they are, along with your station’s unique selling points that set it apart from these competitors.

Furthermore, you should include information about the management and co-founding team, outlining their roles and contributions to the station’s success.

Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to offer a clear view of your gas station’s financial strategy.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Gas Station, the Business Overview section can be effectively organized into 2 main slides:

Facility & Location

Briefly describe the gas station’s physical setup, focusing on its functionality, ease of access, and the overall environment that caters to customers’ needs.

Mention the station’s location, emphasizing its accessibility and the convenience it offers to customers, such as proximity to major roads or highways and ample parking space. Explain why this location is beneficial in attracting your target customer base, such as travelers, local commuters, or commercial vehicles.

Operations & Prices

Detail the range of services and products offered, from various fuel types (like regular, mid-grade, premium gasoline, and diesel) to convenience store items and additional services (such as car washes, air pumps, and auto maintenance).

Outline your pricing strategy for fuel and in-store products, ensuring it is competitive and reflects the quality and convenience of your offerings. Highlight any special promotions, loyalty programs, or discount schemes that provide added value to your customers, encouraging repeat visits and customer loyalty.

Make sure to cover here _ Facility & Location _ Operations & Prices

Market Overview

Industry size & growth.

In the Market Overview of your gas station business plan, begin by evaluating the size of the fuel retail industry and its growth prospects. This analysis is essential for grasminating the market’s magnitude and spotting opportunities for expansion.

Key Market Trends

Continue by addressing recent market trends , such as the growing consumer preference for convenience services, the shift towards alternative fuels and electric vehicle (EV) charging stations, and the integration of advanced technologies for payment and service. For instance, spotlight the demand for multi-service stations that offer not just fuel, but also convenience store products, car washes, and EV charging points, in line with the increasing focus on sustainability and convenience.

Key Competitors

Next, assess the competitive landscape, which spans from large chain gas stations to independent operators, as well as emerging trends in alternative fuel services and online fuel delivery. Highlight what sets your gas station apart, be it through superior customer service, diverse service offerings, or innovation in sustainable fuel options.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the gas station , identifying Strengths (such as strategic location and diverse service offerings), Weaknesses (like high operational costs or stiff competition), Opportunities (for instance, the expanding market for alternative fuels and EV charging), and Threats (such as fluctuations in fuel prices or economic downturns that may reduce consumer travel).

Marketing Plan

Next, formulate a marketing plan that delineates strategies to attract and retain customers through targeted advertising, promotional offers, a compelling social media presence, and community engagement activities.

Finally, establish a detailed timeline that pinpoints crucial milestones for the gas station’s launch, marketing initiatives, customer base expansion, and growth goals, ensuring the business progresses with definitive objectives and direction.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the gas station’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the gas station towards its financial and operational goals.

For your gas station business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your gas station’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your gas station business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

Gas Station Business Plan Template

Written by Dave Lavinsky

Gas Station Business Plan

You’ve come to the right place to create your Gas Station business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their gas stations.

Below is a sample business plan for a gas station to help you create each section of your gas station business plan.

Executive Summary

Business overview.

Accelerate Station is a startup gas station located in Dallas, Texas. The company was founded by Bill Johnson, an experienced gas station manager who has gained valuable knowledge on how to run a gas station during the past ten years while working at GAS&GO MART. Now that Bill has experienced managing a gas station, he is ready to start his own company, Accelerate Station. Bill is confident that his business management skills, combined with his understanding of the gas station industry, will enable him to run a profitable gas station of his own. Bill is recruiting a team of gas station personnel to help manage the day-to-day complexities of running a gas station business – sales and marketing, supplier relations, financial management, and customer support.

Accelerate Station will provide gasoline, diesel, electric vehicle charging, automotive parts and accessories, and a small snack assortment. Accelerate Station will be the go-to gas station in a busy intersection located in the heart of the Dallas metropolitan area. The company will be the ultimate choice for convenience and customer service while offering the lowest prices in the area.

Product Offering

The following are the products and services that Accelerate Station will offer:

• Electric Vehicle Charging
• Air (for tires)
• Automotive Parts Assortment (lights, batteries, etc.)
• Automotive Accessories (license plate holders, air fresheners, etc.)
• Snacks & Beverages (vending machine access)

Customer Focus

Accelerate Station will target private and commercial vehicle drivers in Dallas. The company will target individuals that need to refuel as part of their commute to work and commercial drivers fueling up for a long trip. No matter the customer, Accelerate Station will deliver fast and courteous service and the lowest prices in the area.

Management Team

Accelerate Station will be owned and operated by Bill Johnson. Bill is a recent graduate of Texas University with a degree in business administration. He also has over ten years of experience working as a gas station manager for another local company. Bill will be the chief executive officer for the gas station. He will oversee the staff’s activities and day-to-day operations.

Bill has recruited a fellow business school graduate, Stephen Smith, to be the company’s chief operating officer and help oversee the gas station’s business operations. Stephen will handle supplier relationships, logistics, and budgeting for the business.

Bill and Stephen have hired a marketing professional, Mary Miller, to become a member of the Accelerate Station management team. Mary is a graduate of the University of Maine with a bachelor’s degree in marketing. Bill and Stephen rely on Mary’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Accelerate Station will be able to achieve success by offering the following competitive advantages:

• High-traffic location that is visible and accessible to passersby from multiple major streets and highways.
• Accelerate Station uses the latest technology to make it easy and convenient for customers to gas up quickly. Customers can pre-pay using the company’s app, at the pump, or in person at the central kiosk. Providing multiple payment options gives more customers an opportunity to use their preferred method of payment easily.
• The company’s leadership team has built a network of supplier relationships that will allow Accelerate Station to purchase gasoline for lower prices than their competitors. Accelerate will then be able to pass this cost-savings on to customers.

Financial Highlights

Accelerate Station is seeking $880,000 in debt financing to launch its gas station business. The funding will be dedicated towards securing the location and purchasing gas station equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

• Gas station build-out: $480,000
• Gas station equipment, supplies, and materials: $220,000
• Three months of overhead expenses (payroll, utilities): $160,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Accelerate Station.

Company Overview

Who is accelerate station.

Accelerate Station is a newly established gas station company in Dallas, Texas. Accelerate will be the first choice for drivers in Dallas for its convenient location, top-notch customer service, and low prices on gasoline, diesel, and electric vehicle charging. The company will serve drivers of private and commercial vehicles of all types and sizes.

Accelerate Station will be able to guarantee the lowest prices in the area thanks to its leadership team members’ existing supplier network connections. The company offers customers the option to pay using a convenient app, at the pump, or through the central kiosk. Customers can also purchase automotive parts and accessories, and grab a quick snack for the road at the station’s convenient vending machines.

Accelerate Station History

Accelerate Station is owned and operated by Bill Johnson, an experienced gas station manager who has gained valuable knowledge during his ten year tenure working at another local gas station. In addition to his hands-on experience, Bill has recently graduated from Texas University with a degree in business administration. Now that Bill has gained the experience and know-how he needs to manage a gas station, he is ready to start one of his own. Bill has begun recruiting a team of gas station personnel to help manage the day-to-day complexities of running a gas station business – sales and marketing, supplier relations, financial management,  and customer support.

Since incorporation, Accelerate Station has achieved the following milestones:

• Registered Accelerate Station, LLC to transact business in the state of Texas
• Has begun negotiations to purchase the property and reached out to potential builders to construct the station
• Reached out to numerous contacts to include gasoline and diesel suppliers and electric vehicle charging station providers to begin obtaining supplier contracts
• Began recruiting a staff of gas station attendants to work at Accelerate Station

Accelerate Station Services

• Automotive Accessories (license plate holders, air freshener, etc.)

Industry Analysis

The gas station industry in the United States is valued at an estimated $138B with over 13,800 businesses in operation and more than 162,000 employees nationwide. Included in the gas station industry are businesses that sell automotive fuels such as gas and diesel, automotive parts and services (such as car washes), and other non-automotive goods and services. Many gas stations also co-locate with a convenience store to drive more traffic to their business. These gas stations are part of the larger industry of “gas stations with convenience stores”, which is valued at $649B in the U.S. with over 122,000 operating businesses and 1.0M employees across the country. In addition to gasoline and automotive services, these businesses also sell groceries and other convenience goods.

Gas station market demand is dependent on the volume of drivers on the road (both personal and commercial). Profitability typically depends on industry operators’ ability to secure high traffic locations and purchase their gas for the lowest prices possible.

A growing challenge for gas station industry operators is the rise in electric vehicles. To remain competitive, many industry operators have begun offering electric vehicle charging options in addition to traditional gasoline.

Customer Analysis

Demographic profile of target market.

Accelerate Station will target private and commercial vehicle drivers in Dallas. The company will target individuals that need to refuel as part of their commute to work and commercial drivers fueling up for a long trip. Accelerate will be able to accommodate vehicles of all types and sizes including diesel, hybrid, and electric vehicles. No matter the customer, Accelerate Station will deliver fast and courteous service and the lowest prices in the area.

The precise demographics for Dallas, Texas are:

Customer Segmentation

Accelerate will primarily target the following customer profiles:

• Drivers of private vehicles
• Drivers of commercial vehicles
• Drivers of gasoline vehicles
• Drivers of diesel vehicles
• Drivers of electric vehicles

Competitive Analysis

Direct and indirect competitors.

Accelerate Station will face competition from other companies with similar business profiles. A description of each competitor company is below.

GAS&GO MART

GAS&GO MART is one of the largest and oldest commercial gas stations based in Dallas, Texas. Established in 1955, the company currently operates twenty stations throughout the Dallas-Fort Worth metropolitan area. GAS&GO MART sells gasoline and diesel, automotive parts, and snacks. GAS&GO MART aims to deliver quick service for customers on the go. The company uses a stringent inspection process to ensure all of its products are the best quality. GAS&GO MART’s team of experienced gas station attendants are available to assist customers as needed.

Speedy Gas Station

Speedy Gas Station is a small gas station catering to local drivers in Dallas, Texas. Speedy Gas Station operates one location in a busy retail district. The company provides gasoline, diesel, and a self-service car wash. Speedy Gas Station is family owned and operated by former race car drivers who know the importance of fast service. The gas station attendants are able to help customers check their oil, tires, and other small automotive issues. The company prides itself on providing the fastest service and quality products.

Express Gas Station

Express Gas Station is a trusted Dallas, Texas-based gas station that provides superior gasoline to drivers in Dallas. The company offers a spacious layout that can accommodate the largest of commercial vehicles and is equipped with an electric vehicle charging station. Express Gas Station operates a single location near the outskirts of Dallas and is in the process of opening two additional locations within the city.

Competitive Advantage

Accelerate Station will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Accelerate Station will offer the unique value proposition to its clientele:

• Customers can pre-pay using the company’s app, at the pump, or in person at the central kiosk. Providing multiple payment options gives more customers an opportunity to use their preferred method of payment easily.

Promotions Strategy

The promotions strategy for Accelerate Station is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as LinkedIn, Twitter, Instagram, Facebook, TikTok, and YouTube. She will ensure Accelerate maintains an active social media presence with regular updates and promotional content to incentivize customers to use the company’s services.

Professional Associations and Networking

Accelerate Station will become a member of professional associations such as the American Gas Station Association, Dallas Gas Station Managers Society, and the Texas Diesel Association. The leadership team will focus their networking efforts on expanding the company’s supplier network.

Print Advertising

Accelerate Station will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents and businesses that are likely to frequent the gas station.

Website/SEO Marketing

Accelerate Station will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list the products and services Accelerate is able to provide. The website will also list information on discounts and promotional giveaways.

The marketing director will also manage the company’s website presence with SEO marketing tactics so that when someone types in a search engine “Dallas gas station ” or “gas station near me”, Accelerate Station will be listed at the top of the search results.

The pricing of Accelerate Station will be moderate and lower than its competitors so customers feel they receive value when purchasing the company’s products and services. Accelerate will also offer discounts to regular customers.

Operations Plan

The following will be the operations plan for Accelerate Station.

Operation Functions:

• Bill Johnson will be the CEO of the company. He will oversee the gas station staff and day-to-day operations. Bill has spent the past year recruiting the following staff:
• Stephen Smith – Chief Operating Officer who will manage the budgeting, supplier relationships, and logistics.
• Jennifer Willams – Bookkeeper who will provide all accounting, tax payments, and monthly financial reporting.
• Mary Miller – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and print advertising campaigns.
• Micheal Jones – Quality Control Manager who will oversee all inspections of products, equipment, and processes.

Milestones:

Accelerate Station will have the following milestones complete in the next six months.

12/1/2022 – Finalize contract to purchase property

12/15/2022 – Finalize employment contracts for the Accelerate Station management team

1/1/2023 – Begin build-out of the gas station and purchase equipment, materials, and supplies

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts with suppliers

3/15/2023 – Accelerate Station officially opens for business

Bill has recruited a fellow business school graduate, Stephen Smith, to be the company’s chief operating officer and help oversee gas station’s business operations. Stephen will handle supplier relationships, logistics, and budgeting for the business.

Financial Plan

Key revenue & costs.

The revenue drivers for Accelerate Station are the fees charged to customers in exchange for the company’s products and services. When it comes to pricing, the station will monitor supply costs, average prices charged by competitors, and product availability in the market to ensure its prices will generate a healthy profit margin.

The cost drivers will be the overhead costs required in order to staff a gas station. The expenses will be the product itself, payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Average sales per month: 2,000
• Average fees per month: $15,000
• Overhead costs per year: $640,000

Financial Projections

Income statement, balance sheet, cash flow statement, gas station business plan faqs, what is a gas station business plan.

A gas station business plan is a plan to start and/or grow your gas station business. Among other things, a fuel station business plan outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections. You can easily complete your Gas Station business plan using our Gas Station Business Plan Template here .

What are the Main Types of Gas Stations?

There are a number of different kinds of gas stations, some examples include: Franchise Gas Station, Full Service Gas Station, or Quick Service Gas Station.

How Do You Get Funding for Your Gas Station?

After you complete your filling station business plan, you can start to seek financing.

Gas Stations are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Gas Station Business?

Starting a Gas Station business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Gas Station Business Plan - The first step in starting a business is to create a detailed fuel station business plan pdf or doc that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your Gas Station business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your Gas Station business is in compliance with local laws.

3. Register Your Gas Station Business -Once you have chosen a legal structure, the next step is to register your Gas Station business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your Gas Station business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees -There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Gas Station Equipment & Supplies - In order to start your Gas Station business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your Gas Station business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Learn more about how to start a successful Gas Station business: How to Start a Gas Station

Gas Station Business Plan Template

If you want to start a new gas station business or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their gas stations.

Below are links to each section of a successful gas station business plan template:

Next Section: Executive Summary >

Gas Station Business Plan FAQs

What is the easiest way to complete my gas station business plan.

Growthink's Ultimate Business Plan Template  allows you to quickly and easily complete your Gas Station Business Plan.

What Is a Gas Station Business Plan?

A gas station business plan is a plan to start and/or grow your gas station business. A filling station business plan provides details about your business concept, competition, target customers, presents your marketing plan and details your financial projections.

This is true for a full service gas station, filling station, convenience store gas station or a small gas station.

Why Do You Need a Business Plan for a Gas Station?

If you’re looking to start a gas station business, or grow your existing gas station business, you need a business plan. A business plan will illustrate your business goals and your strategy for reaching them. Your fuel station business plan should be updated as your company grows and changes.

What Are the Sources of Funding for Gas Station Businesses?

Gas Station businesses are usually funded through bank loans, personal savings and/or angel investors. To secure a bank loan, they will need to review your business plan and show them reasonable financials.

Angel investors are also common sources of funding.  These are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

GAS STATION BUSINESS PLAN OUTLINE

• Gas Station Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Gas Station Business Plan Summary

Start Your Gas Station Plan Here

Other Helpful Business Plan Articles & Templates

How to write a business plan for a gas station?

Putting together a business plan for a gas station can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing gas station, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a gas station?

What information is needed to create a business plan for a gas station.

• How do I build a financial forecast for a gas station?

The written part of a gas station business plan

• What tool should I use to write my gas station business plan?

Having a clear understanding of why you want to write a business plan for your gas station will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a gas station business plan.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your gas station is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your gas station, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small gas station runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your gas station's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your gas station business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your gas station's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed gas station business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your gas station has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a gas station, let's take a look at what information is needed to create one.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Writing a gas station business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a gas station

Carrying out market research before writing a business plan for a gas station is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

You may find that customers prefer to pay for gas with credit cards rather than cash, and that they could be interested in buying convenience store items when they fill up their tank.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your gas station.

Developing the marketing plan for a gas station

Before delving into your gas station business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a gas station

As you embark on starting or expanding your gas station, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A gas station might incur staffing costs such as salaries for attendants, cashiers, and managers. Additionally, the gas station might incur costs for equipment such as pumps, tanks, hoses, and other necessary equipment.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your gas station's financial forecast?

The objective of the financial forecast of your gas station's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a gas station are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a gas station shows how much revenue and profits your business is expected to generate in the future.

Ideally, your gas station's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established gas station. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your gas station

Your gas station's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

Your gas station's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

• Your gas station's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
• And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

A projected cash flow statement for a gas station is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your gas station business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the gas station is appropriately funded.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your gas station as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your gas station, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your gas station business plan, let's shift our focus to the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of a gas station business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a gas station business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your gas station's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your gas station's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

As you build your gas station business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your gas station, you could emphasize the potential growth of the area, noting that it has a large population and many commuters who may be in need of a convenient gas station. You could also mention the potential to add amenities to the station, such as a convenience store, that could draw in more customers. Additionally, you might highlight the accessibility of the location by emphasizing its proximity to major roads and highways, as well as its visibility from the street.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your gas station business plan should include a detailed description of what your company sells to its customers. 

For example, your gas station might offer customers a convenience store and car wash to make their visit more enjoyable. The convenience store could provide snacks, beverages, and other items like motor oil and car air fresheners. The car wash could give customers the opportunity to keep their vehicles clean and running efficiently. Additionally, your gas station could offer a mechanic to check and repair vehicles, providing a valuable service to motorists.

The reader will want to understand what makes your gas station unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When presenting your market analysis in your gas station business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your gas station, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your gas station is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include young adults in their 20s and 30s who live in urban areas. This segment might appreciate the convenience of the gas station and its services, such as convenient snacks, drinks, and car care products. They might also appreciate the gas station's proximity to other stores and businesses, making it a convenient one-stop shop.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your gas station.

5. The strategy section

When writing the strategy section of a business plan for your gas station, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

One risk your gas station might face is theft of fuel or other goods. This could occur if individuals break into the station and take products without paying for them. Additionally, your gas station could face risks from environmental hazards. For example, there could be a spill from a fuel tank that affects the environment, or a hazardous material that needs to be cleaned up and disposed of properly.

6. The operations section

The operations of your gas station must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your gas station's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You could have key assets such as the gas station building and the equipment within it. This may include the pumps, the cash register, and other items necessary for the operation of the gas station. Additionally, the gas station could possess intellectual property such as a unique logo or slogan, or any copyrighted material used in advertisements or promotions.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a gas station business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my gas station's business plan?

There are two main ways of creating your gas station business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your gas station's business plan

Using online business planning software is the most efficient and modern way to create a gas station business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your gas station's business plan

Outsourcing your gas station business plan to a business plan writer can also be a viable option.

Business plan writers are skilled in creating error-free business plans and accurate financial forecasts. Moreover, hiring a consultant can save you valuable time, allowing you to focus on day-to-day business operations.

However, it's essential to be aware that hiring business plan writers will be expensive, as you're not only paying for their time but also the software they use and their profit margin.

Based on experience, you should budget at least £1.5k ($2.0k) excluding tax for a comprehensive business plan, and more if you require changes after initial discussions with lenders or investors.

Also, exercise caution when seeking investment. Investors prefer their funds to be directed towards business growth rather than spent on consulting fees. Therefore, the amount you spend on business plan writing services and other consulting services should be insignificant compared to the amount raised.

Keep in mind that one drawback is that you usually don't own the business plan itself; you only receive the output, while the actual document is saved in the consultant's business planning software. This can make it challenging to update the document without retaining the consultant's services.

For these reasons, carefully consider outsourcing your gas station business plan to a business plan writer, weighing the advantages and disadvantages of seeking outside assistance.

Why not create your gas station's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your gas station business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your gas station business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your gas station and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your gas station business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a gas station? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Convenience Store Gas Station Business Plan

Start your own convenience store gas station business plan

Allensburg's Food and Gas

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Allensburg is a small town with a population 3,400. Located on rural Highway 310, the town is 30 miles south of the city of Kent and 34 miles north of the city of Willard. Highway 310 connects Kent and Willard that both have universities and a cumulative population of 200,000 residents. The highway is the main road through town and is used daily by thousands of commuters between the two cities. These commuters sustain a number of road side businesses on Highway 310 that sell flowers, produce and bakery products.

In order to get gas in the Allensburg area, commuters currently have to leave the highway and drive three miles into the edge of town. Robert Cole, the owner of Allensburg’s Food and Gas has the opportunity to rent a plot of land just off the Allensburg exit of Highway 310.

Allensburg’s Food and Gas will offer these commuters gas, organic produce, and a deli. On the way to work, a commuter could stop for gas and pick up a sandwich. On the way home, the same commuter could stop again to pick up something for dinner.

The aim of this plan is to be a guide for this start-up business. Researching and defining our markets, strategies, mission and financials will provide insight and prepare the owner to successfully run Allensburg’s Food and Gas.

1.1 Objectives

• To capture an increasing share of the commuter traffic passing through Allensburg.
• To offer our customers superior products, at an affordable price.
• To provide customer service that is second to none.

1.2 Mission

The mission of Allensburg’s Food and Gas is to offer commuters on Highway 310 competitive gas prices and great food. The company will make a healthy profit for its owners and provide a rewarding work environment for its employees.

1.3 Keys to Success

• Good quality products at competitive prices.
• Excellent customer service that will promote customer loyalty.
• A location that will assure that commuters will stop.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Allensburg’s Food and Gas is a new convenience store and gas station in Allensburg. Robert Cole, owner of Allensburg’s Food and Gas, has seven years of experience in managing gas stations. Robert will focus on the commuters that pass through the town daily. Allensburg’s Food and Gas will offer its customers the best gas prices and quality food products.

2.1 Company Ownership

Allensburg’s Food and Gas is wholly owned by Robert Cole.

2.2 Start-up Summary

Robert Cole will invest $60,000 in Allensburg’s Food and Gas. Robert aims to secure an SBA of $150,000 to finance the remainder of the start up costs.

The following chart and table show projected initial start-up costs for Allensburg’s Food and Gas.

Allensburg’s Food and Gas sells the following products:

• Gasoline and diesel fuel;
• Oil, de-icer, car accessories, etc.;
• Deli items;
• Bakery goods;
• Organic produce.

Market Analysis Summary how to do a market analysis for your business plan.">

Located on rural Highway 310, Allensburg is 30 miles south of the city of Kent and 34 miles north of the city of Willard. Highway 310 connects Kent and Willard that both have universities and a cumulative population of 200,000 residents. The highway is the main road through town and is used daily by thousands of commuters between the two cities. The closest gas station in either direction is over 20 miles away.

These commuters currently have no convenient shop in which to buy food to or from work once they are on Highway 310; more importantly, eighty percent of Highway 310 commuters fits the demographic profile of customers of upscale organic/natural food stores:

• Age: 25 – 45 years of age;
• Gender: 60% women;
• Average income: $40,000+;
• Education: college graduate;
• Employment: professionals in business and education.

4.1 Market Segmentation

The target customers of Allensburg’s Food and Gas are the commuters that use Highway 310.

Strategy and Implementation Summary

Allensburg’s Food and Gas will focus on becoming a routine stop for the commuter traffic on Highway 310, not just for those people who need gas, but for those who are looking for a healthy, tasty snack on their drive, or need to pick up some small grocery item on their way home. Allensburg’s Food and Gas will aim to be more than a gas station to its customers, it will be a friendly place to stop for tired commuters.

5.1 Competitive Edge

The competitive edge for Allensburg’s Food and Gas is the following:

• Location: Allensburg’s Food and Gas is located on Highway 310. The closest competitor is three miles into the town of Allensburg.
• Quality Deli and Organic Produce : While buying gas, commuters will now be able to pick up lunch, or buy something to take home. The commuter will soon regard Allensburg’s Food and Gas as an invaluable time saver in their day.

5.2 Sales Strategy

Allensburg’s Food and Gas will keep its gas prices competitive with other stations in a fifty mile radius of the station in order to attract commuters. Customers that purchase more than $10 worth of gas will be given 15% coupon on purchases in the store during the first month of operation, to encourage purchases and to introduce them to the concept of buying quality organic foods at the gas station.

5.2.1 Sales Forecast

In order to maintain competitive gas prices, the cost of gas to the consumer will never exceed 15% of wholesale cost. Allensburg’s Food and Gas will focus on increasing food sales in order to meet total sales forecast goals.

The following is the sales forecast for three years.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Robert Cole, owner of Allensburg’s Food and Gas, has seven years of experience in managing gas stations/convenience stores. Robert has a reputation as an excellent staff supervisor. From 1993 to 1996, Robert was the manager of Higgins Texaco, one of the largest gas station/convenience stores in Willard. At Higgins, Robert supervised a staff of seven. In 1997, Robert became manager of the Barger Chevron, located at the southern tip of Kent, near Highway 310.

6.1 Personnel Plan

The Allensburg Food and Gas will have a staff of five:

• Store/deli staff (2)
• Gas attendants (2)

Financial Plan investor-ready personnel plan .">

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7.1 Break-even Analysis

The monthly break-even point is approximately $49,500.

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

7.4 Projected Balance Sheet

The following table and chart highlight the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5541, Gasoline Service Station, are shown for comparison.

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Oil and Gas Business Plan

MAR.22, 2024

The oil and gas sector is a highly regulated industry. A well-structured oil and gas business plan can help navigate these complexities.

According to a survey by EY, inadequate business planning is one of the top reasons oil and gas projects fail to achieve target profitability. “Firms that take a comprehensive approach through integrated business planning are better positioned to withstand market volatility and capitalize on opportunities,” notes Herb Listen, EY’s U.S. Oil & Gas Leader.

In this article, we’ll outline the key elements of an oil and gas business plan along with an oil and gas business plan template. By the end of this article, you’ll understand what it takes to develop a robust oil and gas drilling business plan.

What Is the Business Plan for an Oil and Gas Company?

A business plan for the oil and gas industry is a professional document that:

• Outlines the company’s goals
• Specifies strategies
• Producing oil and gas resources

The oil and  gas station business plan  serves as:

• A roadmap for the company’s operations
• A tool for securing financing from investors or lenders

Here are some key components typically included in an oil and gas business plan:

• Executive Summary:  A concise overview of the business, its objectives, and the key elements of the oil and gas development business plan.
• Company Description:  Details about the company, its history, ownership structure, and legal form.
• Industry Analysis:  An assessment of the current state of the oil and gas industry, including market trends, competition, and regulatory environment.
• Operations Plan:  A description of the company’s operational processes, including techniques, methods, processes, and logistics.
• Marketing Plan:  An outline of the company’s plans for marketing and selling its oil and gas products, including target markets, pricing strategies, and distribution channels.
• Management and Organization Team:  Details about the company’s management team, organizational structure, and key personnel.
• Financial Projections:  Detailed financial forecasts, including projected financial statements, supported by assumptions and analyses.

The oil and gas company should tailor the oil and gas startup business plan to their specific goals and circumstances, and they should regularly update it to reflect changes in the industry, market conditions, and operations.

Why Do You Need a Business Plan Sample for an Oil and Gas Exploration Company?

There are a few key reasons why you would need a solid business plan, like the  biodiesel business plan  when starting your own oil and gas business:

• Attract Investment:  The oil and gas industry requires significant upfront capital for exploration, drilling, equipment, and operations. A detailed oil and gas upstream business model and plan demonstrates to potential investors a viable strategy for generating returns.
• Guide Operations:  An oil and gas field business plan serves as a roadmap for executing exploration and production activities. It lays out key milestones, timelines, capital expenditures needed, regulatory requirements, and operational plans.
• Analyze Economics:  Thorough market analysis, cost projections, pricing forecasts, and breakeven modeling allow testing the economic viability of prospects before committing major resources. The oil and gas exploration business plan quantifies potential returns and profits based on various scenarios.

To illustrate the importance of a sample business plan, let’s walk through the key sections of an oil and gas business plan template for a fictional oil and gas exploration firm called TX Energy:

Clear and detailed

Alex provided us a detailed report on a business we were thinking of buying. The report was very clear and detailed, and he was available to answer any questions. We highly recommend his service

Executive Summary

Business overview.

TX Energy is a newly formed independent oil and gas exploration and production company headquartered in Houston, Texas. Our mission is to become a leading operator in the Gulf of Mexico region through the acquisition and development of high-quality offshore prospects.

Management Team

With a seasoned management team that has over 100 combined years of experience in the offshore Gulf, we plan to leverage our deep industry knowledge and technical expertise to build a portfolio of attractive assets.

Business Strategy

Our initial focus will be on identifying and acquiring undervalued offshore leases with proven undeveloped reserves and executing low-risk, high-return drilling programs.

We are seeking $75 million in equity financing to fund lease acquisitions, drilling operations, and general working capital needs during our start-up phase.

Financial Projections

Financial projections show the potential for strong growth and returns, with estimated revenues of $50 million by Year 5.

Company Overview

TX Energy is an independent exploration and production company in the Gulf of Mexico. We were founded in 2024 by a team of seasoned industry professionals with a successful track record in this region.

Corporate headquarters:  Houston, TX

Operating region:  U.S. Gulf of Mexico

Business Concept

Leverage management’s expertise to:

• Identify and acquire undervalued offshore leases
• Optimize development plans for discovered resources
• Execute low-risk, high-return drilling programs
• Rapidly build a diversified portfolio of producing properties

Industry Analysis

The U.S. Energy Information Administration expects the demand for oil and natural gas will grow in the coming years. Some key industry statistics and forecasts:

• The oil and gas market size is projected to increase from $7,625.82 billion in 2024 to $9,347.9 billion in 2028, with a CAGR of 5.2%. (Source –  The Business Research Company )
• The global oil demand is forecasted to rise by 1.7 million barrels per day (mb/d) in the first quarter of 2024. The expansion pace might slow down from 2.3 mb/d in 2023 to 1.3 mb/d in 2024. (Source –  IEA )

Key Industry Drivers and Trends:

• Rapid adoption of subsea tiebacks and multi-well platforms to reduce costs
• Increased interest in re-developing legacy fields using advanced recovery techniques
• Growing regulatory oversight and focus on safety/environmental practices
• Persistent workforce shortages requiring investment in training pipelines

Customer Analysis

Our primary customers will be midstream companies, refiners, and utilities purchasing our crude oil and natural gas production. We have identified the following key players as potential off-takers in the Gulf region:

• Mid-Continent Oil Pipelines (Crude oil transport)
• Kinder Morgan/BP (Natural gas processors)
• Marathon Petroleum (Refiner)
• Southern Company (Utility)

As a non-integrated independent producer, we will aim to establish long-term sales agreements and strategic relationships with creditworthy counterparties. Our go-to-market strategy will focus on:

• Leveraging management’s industry network to engage top prospective customers early
• Ensuring adequate takeaway capacity ahead of new wells coming online
• Negotiating favorable pricing terms based on our high-quality offshore crude
• Bundling gas production with crude offtakes where possible

Competitive Analysis

Large integrated operators such as Chevron, Shell, and BP, as well as several large independent companies, dominate the upstream market of the Gulf of Mexico. Fewer mid-sized players focus solely on exploiting stranded/bypassed reserves on the shelf. Our primary competitors include:

Our primary competitors include:

Relative to these competitors, our key advantages are:

• Unrivaled management experience and technical capabilities specific to shelf opportunities
• Exclusive focus on low-risk, quicker cycle time development projects
• Simple value investment proposition vs. diversified multi-regional operators

Other competitive strengths include a projected low operating cost structure and established relationships with service companies active in the region.

Marketing Plan

TX Energy will position itself as the premier low-risk, low-cost developer of shelf oil and gas resources in the Gulf of Mexico. We will pursue a commodity-focused strategy, marketing our high-quality crude and gas production to maximize netbacks.

Pricing Strategy

As a non-integrated producer, we will pursue a commodity marketing strategy focused on achieving maximum netback pricing for our offshore production. Specific tactics include:

• Crude oil – Secure term marketing agreements with refiners or marketers, pricing based on regional benchmarks like LLS or WTI
• Natural gas – Pursue portfolio-based sales to LDCs, utilities, and marketers at Henry Hub+/- basis pricing

Sales & Distribution Channels

We will employ two primary sales and distribution channels:

• Crude oil production – Pipeline connections from offshore platforms to main corridor pipelines like LOCAP and NGPL
• Natural gas production – Subsea tiebacks into regional gathering systems and interstate/intrastate pipelines

Strategic Partnerships

Establishing strategic relationships across our supply chain will be a critical success factor. Key partnership areas include:

• Offshore drilling contractors
• Subsea construction and installation contractors
• Pipeline companies and midstream providers
• Supply boat and support vessel operators

Marketing Programs

Our key marketing initiatives will focus on building brand awareness and establishing TX Energy as a trusted and preferred supplier to Gulf Coast off-takers:

• Investor marketing/participation at industry conferences and events
• Working interest/royalty owner marketing of upcoming development projects
• Direct outreach to commercial teams at potential customers
• Development of professional digital marketing materials

Operations Plan

Oil & gas leases.

Our lease acquisition strategy will initially target offshore shelf properties with the following characteristics:

• Water depths < 600 feet
• Located near existing infrastructure to minimize upfront capital costs
• Proven undeveloped reserves between 10-50 million BOE
• Technically reasonable development plan via subsea tiebacks or platform drilling

We have already identified a pipeline of potential acquisition targets fitting this criteria. Once leases are acquired, we will conduct geologic and reservoir studies to high-grade the most attractive drilling opportunities.

Drilling & Completion Activities

We will utilize jack-up and submersible rig types commonly used on the shelf For relatively shallow drilling targets. We will use the best available techniques and technologies to drill all wells and to ensure maximum production rates and recoverable reserves.

Production, Facilities & Maintenance

Depending on the size and scope of each project, we will utilize either:

• Subsea tiebacks to existing third-party infrastructure
• New-build production platforms designed for unmanned operations

Environmental & Regulatory

We are committed to operating at the highest level of environmental, safety, and regulatory standards in offshore space. This includes comprehensive SEMS programs, oil spill prevention and response plans, and other mandatory policies/procedures.

Key regulatory bodies overseeing our operations include:

• Bureau of Safety and Environmental Enforcement (BSEE)
• Bureau of Ocean Energy Management (BOEM)
• U.S. Coast Guard
• Environmental Protection Agency

Organization & Management Team

TX Energy has assembled a world-class team with unmatched technical and regional expertise in the offshore Gulf of Mexico:

• John Watson, Chief Executive Officer –  John has 30+ years of offshore engineering and operations experience. He is a former VP of offshore at a major energy company with expertise in subsea tieback developments and shelf production.
• Jane Litt, VP of Exploration –  Jane has 25 years of experience in offshore Gulf exploration. She was previously a senior exploration advisor at a large independent oil company. She holds a Ph.D. in Petroleum Geology from Rice University.

Additional key hires planned for Year 1 include:

• Drilling Manager
• Production Engineer
• HSE/Regulatory Specialist
• Land/Legal Counsel
• Accounting/Finance support

As we grow, certain additional functions like HR, IT, and engineering teams may be built out internally rather than fully outsourced.

Financial Plan

Based on our phased development plan and production ramp-up schedule, we are seeking $75 million in equity financing to fund TX Energy’s start-up and growth over the initial 5 years period:

Use of Funds

• Offshore lease acquisitions: $25M
• Capital expenditures (drilling/facilities): $30M
• Operating expenditures: $15M
• General working capital: $5M

Projected Profit & Loss Statement

Projected balance sheet, projected cash flow statement.

Overall, these projections in the  coal mining business plan  illustrate TX Energy’s ability to rapidly grow production, revenue, and cash flow in a capital-efficient manner and achieve strong economic returns for investors.

Partner With OGSCapital for a Professional Oil and Gas Business Plan

Over at OGSCapital, we understand just how crucial it is for independent oil and gas outfits to have a really solid, well-polished business plan. Whether you need to win over investors or secure financing from lenders, our team has got your back.

With more than 15 years of expertise in aiding both startups and established businesses in crafting thorough and persuasive business plans such as the  renewable energy business plan  and  logistics business plan , we’re well-equipped to assist.

Contact us today to learn more about our business plan consulting services and how we can help you.

Download Oil and Gas Business Plan Sample in pdf

Frequently Asked Questions

Is oil and gas a good business?

Yes, because the oil and gas industry is one of the largest sectors in the world, generating over trillion in global revenue as of 2022. In 2024, the industry is expected to have solid growth.

How to start your own oil and gas company?

Starting an oil and gas company involves several steps:

Step 1:  Do market research.

Step 2:  Decide your geographical location.

Step 3:  Build a team.

Step 4:  Create an oil and petroleum business plan.

Step 5:  Set up a legal entity (LLC, Corporation, etc.)

Step 6:  Seek funding.

Step 7:  Get the equipment.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Gas Delivery Business Plan Template & Guidebook

Business planning is an important part of starting up a new business. A good business plan can help you get investors and lenders to invest in your company. In order to write a good business plan, it is helpful to use sample business plans in order to get an idea of what the different sections should include. This article provides some information on how to write a business plan for your gas delivery business.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Gas Delivery Business [11 Steps]
• 25 Catchy Gas Delivery Business Names:
• List of the Best Marketing Ideas For Your Gas Delivery Business:

How to Write a Gas Delivery Business Plan in 7 Steps:

1. describe the purpose of your gas delivery business..

The first step to writing your business plan is to describe the purpose of your gas delivery business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a gas delivery business:

Our purpose at Gas Delivery Inc. is to provide our clients with a convenient, reliable, and efficient way to get the gas they need, when they need it. Our mission is to become the leading provider of gas delivery services in the region, offering a wide range of options and packages to suit every need and budget. We are committed to providing our clients with high-quality gas, delivered in a safe, timely, and professional manner. We aim to provide a hassle-free, stress-free experience for our clients, and to deliver exceptional results that exceed their expectations. We believe that everyone deserves to have access to convenient, reliable, and efficient gas delivery services, and we strive to provide our clients with the best products and services available.

2. Products & Services Offered by Your Gas Delivery Business.

The next step is to outline your products and services for your gas delivery business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your gas delivery business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your gas delivery business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your gas delivery business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a gas delivery business?

To run a gas delivery business, you will need a few key pieces of equipment, supplies, and permits. These include:

• Gas delivery trucks and tanks
• Gas delivery hoses and fittings
• A permit to operate your business (depending on location)
• Business licenses and permits for business activities (if applicable)

You may also need to hire and train staff to manage the gas delivery operations and provide customer service.

5. Management & Organization of Your Gas Delivery Business.

The second part of your gas delivery business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your gas delivery business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Gas Delivery Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a gas delivery business varies based on many different variables, but below are a few different types of startup costs for a gas delivery business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your gas delivery business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your gas delivery business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your gas delivery business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Gas Delivery Business Plans:

Why do you need a business plan for a gas delivery business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your gas delivery business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your gas delivery business?)

To build a business plan for your gas delivery business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written gas delivery business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a gas delivery business plan yourself?

Yes, you can write a gas delivery business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

06 May 2021

Starting a Liquified Petroleum Gas (LPG) Business in Nigeria

Introduction

The number of Nigerians who use cooking gas for various domestic cooking purposes are increasing daily. Women/mothers are gradually shifting focus from the use of kerosene stoves to the use of gas cooker or cooking gas. That will help decrease the problems of deforestation and help conserve our natural forests and prevent potential disasters that is inherent with desert encroachment such as erosion.

The increasing use of cooking gas to cook by Nigerians helps keep the environment cleaner as the waste diffused into the air from the use of firewood is being eliminated. Apart from the environmental benefits, the increase in the number of people using cooking gas especially in urban areas has created good business opportunity for smart entrepreneurs who can now trade on cooking gas and cooking gas equipment to make good profits.

Nigeria currently has a few gas projects, especially the $2.8 billion Ajaokuta, Kaduna, Kano pipeline and the Nigeria LNG Limited train seven, however, most gas projects in the country are supported by the Federal Government instead of a private sector led industry.

There are a lot of moderately sized LPG filling plants across the country. Nigeria has about 350 of these across the country (within 50 MT – 100 MT storage capacity). From NLNG to coastal storage depots, it goes via trucks to the LPG inland storage depots and LPG filling plants and from there it goes to the secondary distributors (cylinder sellers who take from the filling plants), who then distributes to the end users and maybe to tertiary distributors

Types of Distributors in LPG Business

There are two types of distributors in LPG Business, they are:

Primary Distributor

The filling plants are primary distributors

Secondary Distributor

The secondary distributors are supplied gas and cylinders by the primary distributors (filling plants). The secondary distributors fill a thousand cylinders or thereabout and distribute directly to end users. There is a new set of secondary distributors in Nigeria (these guys are the second type) – they own filling plants of their own which are mini plants, these are 1 MT – 5 MT storage capacity which are typically installed in gas stations. So they normally buy in bulk from primary distributors (the filling plants) about 1 -2 MT using bobtail trucks which they in turn fuel to end users from gas stations.

Profitabilty of Liquified Petroleum Gas (LPG) Business

Cooking gas business is very profitable and you don’t have to break the bank before you can start. With N300,000, you will get your business setup and ready to go with almost everything necessary in place. And this is a big business that anyone who is into it can be proud of.

LPG Properties and Composition

Cooking gas can be measured in litres, kilogrammes and tonnes. 1 kilogramme is equivalent to 1.75 litres and 1 metric tonne is equivalent to 1000 kilogrammes. So 1 metric tone is equivalent to 1,750 litres. Cooking gas cylinders come in different shapes, colors and sizes. The various sizes are 3kg, 5kg, 6kg, 12.5kg, 25kg and 50kg. Also some intermediate sizes could be manufactured based on specific orders.

How to start a LPG Business

Before starting a Liquified Petroleum Gas business one needs to put some things in place and get some documents. The time it takes to set up Liquified Petroleum Gas plants differs, it could take about 2 years depending on the approval process.

The approval process for LPG business involves the following:

town planning approval

Environmental Impact Assessment (E.I.A.) of the site. The EIA must be conducted for both dry and rainy seasons

Getting a fire department approval

Getting a police report

Commencing full engineering, design & procurement assessment

The above mentioned documents would be submitted to the Department of Petroleum Resources (DPR), along with a written application. On receipt of the application, DPR will visit the site to be sure all requirements for the construction of an LPG plant has been fulfilled. Where all these requirements are met by the site, DPR will approve and issue you an Approval to Construct (ATC). This approval grants the owner the permission to start constructing a LPG plant on the identified site.

Equipment acquisition

After getting approval, one can then go ahead to acquire equipment for the liquefied petroleum gas business.

Site construction

Once the equipment has been acquired, the site construction can commence.

The Department of Petroleum Resources (DPR) will visit the site once construction is complete for inspection and certify the design is consistent with proposed plans submitted. They will also witness and sign off on all integrity tests conducted at the plant; following which an operating license will be issued. The process takes about 2 years or more end-to-end. The integrity of the plant itself is a function of the competency and technical capability of both the client and the contractor.

The requirements enumerated above do not preclude foreign investors. It’s a standard operating procedure for both local and foreign investors. For investors, it is imperative they partner with local experts with good industry knowledge, technical knowhow and experience; and who is also versatile with the relevant stakeholders.

Factors to Consider before Starting a LPG Business

Startup Capital – Before starting a LPG business, one must consider the startup capital required for that business. According to experts (people who are already in the business) with a capital of ₦300,000 you can conveniently start one and be able to buy more than 20 cylinders, rent a shop, and buy the initial products. The location however determines the cost of the shop. Locating your business in a highbrow area will cost you more money when compared to a location in a lowbrow area but the cost will be well worth it.

Training – It is important to get attached to any experienced retailers or even depots for about six months to learn the important rudiments of the LPG business. You need to learn how to refill the cylinder, how to transfer, how to change valve. And everything necessary that you must know about the business. You also need to know where and how to buy cylinders.

If you decides to learn in a smart way, you can learn from any of those retailers you see by the roadsides and if you are smart enough, you can get all the knowledge you need there. In anyway, it may take you as much as six months to complete your apprenticeship.

Rent a Shop – The next thing after training is completed and the required knowledge acquired is to go get a shop. The class of people that use cylinder gas cooker are more in the urban area. Almost every part of Lagos is good for the business but some places are better than the others.

Marketing – It is of high importance to employ appropriate marketing strategy to create awareness of your business to people and also to increase your profitability and stay afloat. A business that refuses to engage marketing strategies is doomed for failure and can fold up in no time. It is good to maintain good relationship with customers and show empathy to their needs. Know your customers and find how best to deal with each customers. It’s not just about making sales (one-off sales) but about ensuring “repeat purchases” where the customers comes back after the first time to buy and continues coming back to buy from you. This is what guarantees a business of continuous existence in perpetuity (all other things being equal).

Pricing – As much as possible, offer the lowest of prices. Do not run at a loss or add a high profit margin. Consumers seek to minimize cost as much as possible and would buy from the shop with the lower price. If your prices are too high, customers will run from you. Don’t be too greedy for gain

Competition – After the business has been set up and is running, it is necessary to keep taps on your competitors. Study their moves, and strategize on how to do better than them.

Health and Safety Precautions in LPG Business

The most important health and safety issue in the operations of LPG is the operators – these are the people operating the filling plant. Qualified gas operators are scarce to a large extent in Nigeria to run an LPG plant. Hence, staff hired have little to no training or experience in running an LPG plant. One can decide to have a series of trainings both formal and informal, both on the job and off the job, to ensure our operators are at their best – it really is safer to run a poorly constructed LPG facility with competent operators than to run a properly constructed LPG facility with incompetent operators. The operators come first and are the most important factors even before the facility itself. So just to summarise, the highest significance where safety is concerned are the operators, adequate training and then the quality/ standard of the facilities.

Precautions to be taken when handling a Gas Cylinder.

It is important for one to be very careful when handling gas as it is highly inflammable. The following precautions should be taken when handling gas cylinder:

Gas cylinders should always be placed in a vertical position, unless stated otherwise by the manufacturer.

Cylinders should be restrained securely to prevent them from falling over.

Ensure that the cylinder valves are always tightly closed.

Ensure that the valve is protected by a valve cap to prevent any damage if the cylinder is dropped.

When loading or unloading the cylinders, never drag, drop or roll the cylinder as these can cause major physical damages to the cylinders.

Ensure that the cylinders are always kept in a well-ventilated warehouse with regards to the manufacturer’s ambient temperature standard.

Ensure that the cylinders are always placed on wooden pallet and not on a bare floor.

Prevent direct physical contact among cylinders in storage.

Why one should not be scared to Owning a LPG Business

Pressure vessels (including LPG tanks) are designed and built to sustain their physical integrity under the elements of nature (rain, sunshine etc). People are often discouraged to own and operate LPG skid plants mostly due to the explosive nature of the gas which might be perceived as a threat to lives and properties. However, there are cogent and verifiable reasons why these concerns should not discourage you from owning and operating an LPG skid plant in any location of your choice.

1. Before an LPG skid plant can be sited and installed in a given location, Department of Petroleum Resources (DPR) must carry out a proper Environmental Impact Assessment (EIA) in accordance with the international best standard, followed by calibration test, pressure test and facility integrity test to ascertain the safety compliance limit of the LPG infrastructure. A DPR certificate is issued once all the necessary standards are met.

2. An LPG skid plant comes with a Pressure Relief Valve (PRV) which serves as a vent for built-up pressure. Under a high external temperature (due to a nearby fire incident for instance), the Pressure Relief Valve (PRV) releases the excess pressure fast to prevent the rupturing of the vessel (tank or cylinder).

3. An LPG skid plant has a wall thickness of about 15cm. This serves as a fire and pressure resistance, preventing the rupturing of the vessel (tank and cylinder) under a high and prolonged fire incidence.

4. In accordance with international best standard, an LPG skid plant is filled up to about 85% capacity in order to provide enough space for the thermal expansion of the contained gas when the surrounding temperature increases.

In light of the above, investment in the growing LPG market is the most prudent decision anyone can make, especially as the LPG market in Nigeria is worth over #37 billion annually with about 50% return on investment.

Risks Associated With Running an LPG Business

Having an operator

The biggest risk one would face when running a LPG business is the risk of having an operator who is not knowledgeable enough. Therefore it is of high necessity and importance to conduct initial and ongoing trainings of staff to ensure one has the right operators. Adequate training and competence in plant operations can be said to be the single most important safety factor.

Fire explosion

The highly inflammable nature of liquefied natural gas makes fire explosion a very common risk in the LPG business. However, this risk can be mitigated or even avoided by being at high alert at all times to quickly detect leakages in gas cylinders as these are the major cause of explosion. One also needs to buy good fire extinguisher that can be very handy in time of minor fire outbreak.

Government regulation

Government regulation is another risk in the LPG business. Government is not stable and their regulations and policies are subject to changes in future. Should government decide to increase the price of LPG today, some consumers may find it difficult to take and have to go back to using kerosene or firewood. If that happens, you loose some customers and your sales will drop. However, government is always trying to reduce the price of cooking gas in other to encourage the usage and discourage deforestation.

Government Policies and Incentives on LPG Business

The Federal Government of Nigeria recently declared her intention to inject up to 10 million gas cylinders into the market to help improve safety and deepen cooking gas utilization. The cylinder injection will start under the first phase in 11 pilot states and FCT, with two states from each of the geopolitical zones. The states are Lagos, Ogun, Bauchi, Gombe, Katsina, Sokoto, Delta, Bayelsa, Ebonyi, Enugu, Niger and the Federal Capital Territory. The cylinders will be injected through the marketers. The marketers will be responsible for the cylinders and the exchange will take place in homes and not in filling stations.

The implication of this is that going forward, individuals will no longer own cylinders but cylinders will be owned by the marketers who will ensure that they are safe for usage. This will better guarantee the safety of the users of gas and the society at large. Hence, an opportunity is created for smart entrepreneurs to venture into LPG business as marketers.

The government not only seeks to promote household consumption of LPG gas but to increase LPG usage in agriculture, transportation and manufacturing in order enable the country to reduce CO2 emission by about 20% and create millions of jobs for Nigerians.

The government was targeting the conversion of 45% of about 4 million vehicles in the state to autogas over a four-year period in partnership with marketers.

The government at different levels are pursuing cleaner energy sources for cooking, transportation and power generation.

The Federal Government is working towards opening micro gas distribution channels across all local governments areas in the country.

By Taiwo Olowu, ACA

To learn more how we can help you achieve your vision on starting a business like this, please reach us now on 08023200801, email [email protected] or send us a detailed request by completing our enquiry form

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Please, I want to know more about setting up small size cooking gas plant in Nigeria, especially budgetary estimates including securing regulatory approvals.

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Cooking Gas (LPG) Plant Business In Nigeria (2024 DOC)

Cooking Gas (LPG) Plant Business In Nigeria 2024 PDF Sample | Feasibility Study

Cooking Gas (LPG) Plant Business In Nigeria – Cooking gas is essentially one of the most essential home needs, and of cause for those who do not require kerosene to prepare their meals.

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Business plans and feasibility studies to get a discount.

The cooking gas also known as the liquefied petroleum gas (LPG) business is one business that has been thriving in Nigeria , and with the liquefied petroleum gas (LPG)/cooking gas filling plant business plan & feasibility study you can set up a plant and start running your own business.

Starting a personal LPG Cooking gas plant business in Nigeria can be profiting as much as it is rewarding. It comes with financial commitment and extra work ethic. This PDF file (MS word document) is a comprehensive Cooking Gas (LPG) Plant Business Plan, it has the complete information that you will need to setting up your own LGP filling plant in Nigeria using the gas station business plan doc.

BUY YOUR own Cooking Gas (LPG) Plant Business In Nigeria PDF. Simply order yours by paying N20,000 to

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Account Name – Okite Joseph ikenna

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Once payment is made for the Cooking Gas (LPG) Plant Business In Nigeria PDF, send the following (i) a valid email address and (ii) your payment details to any of these numbers – 07039768549.

What To Use Your Cooking Gas (LPG) Plant Business In Nigeria PDF file For

The Cooking Gas (LPG) Plant Business In Nigeria pdf file can do much more than just planning a business, it can be used for other things as will be listed below, below are what you can do with your Cooking Gas (LPG) Plant Business plan feasibility study;

• You can apply for a business Grant using this business plan /feasibility study
• You can secure Bank Loans for your business or start up capital
• You can use it as a business proposal writing to a cooking gas firm in order to either obtain loans or use an already established cooking gas company name (as franchise).
• Information contained in this feasibility study can serve as a reference to publishable academic project work, seminar paper etc.
• Information contained in this business plan can serve as your model for business or your business concept.

While growing up, there was this little misconception we had about cooking gas , the popular believe back then was that cooking gas is specifically meant for the rich folks, and that getting one and maintaining it cost a whole lot of money. Well, in all honesty, cooking gas is actually one of the cheapest means of cooking your meals, take for example, the average price of a litre of kerosene cost’s N305.55k, while a the price of cooking gas per kg goes for N336 (price is not stable), although the price of gas is a bit higher, however, the 1kg gas will last you for up to three to four days compared to 1 litre of kerosene that might not be enough for a day.

No wonder the market for Cooking Gas (LPG) Plant Business plan In Nigeria is huge and will always accommodate more dealers, in Enugu (Coal City) alone, Cooking Gas (LPG) business Plant should number a little above 60 outlets. Most filling stations are adding it to their products.  A little research on the viability of the business will tell you that it is a viable venture, one that will bring you returns. These days almost every family use cooking gas in their homes and demands keeps increasing as many new homes are either getting a new cooking gas or they are upgrading the one they have already.

Thanks to the government, these days cooking gas has become more affordable, hence the notion of cooking gas being for the rich is no longer there. In major city centres, a landlord will not build his house and then make provision for wood and kerosene methods of cooking, majority of the houses I’ve been to in Enugu, Abuja and Lagos, Landlords now make provision for cooking gas in their kitchens.

Now, let me assure you that with a body like the NLNG in charge, your business continuity is assured. Coming to the market and customer base, Nigeria has an estimated population of 180 million people, out of this number only 1.8 million of the population make use of cooking gas, that is about 10% of the (10 per cent) of the entire population. This simply means that the market has barely been scratched. More people are going with the option of cooking gas, even in the rural areas, cooking gas is becoming the most viable option there.

Factors to Consider Before Setting Up A Cooking Gas (LPG) Plant Business In Nigeria

A brief look at the possible challenges as well as factors you must consider before you start investing into the Cooking Gas (LPG) Plant Business using the gas station business plan doc, see factors below;

Start Up Capital – Every business requires a start up capital , most times you may not have the required fund to start your business, you can actually go for a loan using the Cooking Gas (LPG) Plant Business plan pdf, or you can apply for a loan using the feasibility study. In all, you need to have your start up capital in place.

Research – Getting adequate information on the cooking gas business is very important, it exposes you to information such as the market viability, the level of demand as against supply, the possibility of more people choosing the cooking gas option, the competition and also you get to know how to start, where to start and how much to invest.

Write A Business Plan – Haven achieved the two above, you can go ahead to write a business plan, that is if you know how to, writing a business plan for your business, this entails you have all the necessary information required. You can as well contract a professional to write one for you or follow the easiest of them all, buy one of our Cooking Gas (LPG) Plant Business plan, they are written by professionals who updates the information therein from time to time.

Business Registration – You can now proceed with the registration of your business, of cause, there are procedures to follow. However, to begin with, go to the Corporate Affairs Commission (C.A.C) office in the state where you reside and register, since their office is situated in every state of the federation, you can opt for their online option by visiting their platform.

Trading Equipment – You need your gas hardware equipment to begin with, these equipment refers to different sizes of cylinders, precisely here are the types of cylinder to buy;

• 5kg cylinders
• 5 kg cylinders
• 20kg cylinders
• 45kg cylinders
• 90kg cylinders

Depending on the space in your shop, you can get two 5kg cylinders, fifteen 12.5kg cylinders, five 20 kg cylinders and 45kg cylinders and then maybe one 90kg cylinder, use your initiative to determine what can enter your shop .

Buying Your Cylinders – Since cylinders are in the center of the business , you can actually get them from a reliable cooking gas supplier, they sell the best (both new and old). Buying from them also helps your course as you will be building a business relationship and goodwill. And then organised transport that will move your gas from the supplier to your shop.

Location – Where site this business is equally important, it is advisable to site your Cooking Gas (LPG) Plant Business in a densely populated area. You know why? Most times gas finishes without warning and the customer might not be mobile to travel a long distance in order to buy cooking gas, you become an automatic option. Having your business in such area guarantees you constant customers on a daily basis, you can include additional services such as home delivery, cylinder servicing etc

Skill Acquisition – This part is one of the most important part of this business, this is a high risk business were any slightest mistake will result into inferno. Training can be acquired through other established cooking gas plants, these are the things you must focus on through your skill acquisition period;

• How to change valves
• How to connect gas cylinders to other type gas cookers
• Know how and where to buy gas
• Learn how to differentiate between high and low quality LPG gas

These skills and more will make you stand out in the business.

Cooking Gas (LPG) Plant Business In Nigeria PDF Table Of Content

• Introduction & Terms of Reference
• Executive Summary
• Nature of Gas plant Business Plan/Feasibility Study
• Direct Cost & Operational Expenses
• Expenditure/Capital Cost
• Plant Operation/List of Equipment
• Shares Capital
• Organization & Management
• Projected Balance Sheet
• Profitability Projection
• Cash Flow Projection
• Calculation of Loan Repayment & Interest
• Notes to Accounts & Projection

Cooking Gas (LPG) Plant Business In Nigeria PDF List Of Tables

• Calculation of Monthly Loan Repayment, Processing Fees, Management
• Fees and Interest
• Fixed Asset and Depreciation Computation
• Direct Cost Estimate for years
• Operational Cost for years

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Once payment is made for the Cooking Gas (LPG) Plant Business In Nigeria PDF | Feasibility Study, send the following info (i) a valid email address and (ii) your payment details to any of these numbers – 07039768549.

NOTE – It is important to note that the Business Plan for Cooking Gas (LPG) Plant Business In Nigeria | Feasibility Study PDF will immediately be sent to the email address you’ve provided after your payment has been confirmed.(Soft copy only).

An Executive Summary Of This Business Plan

The Cooking Gas Plant has to be fully registered business with license to operate in the designated environment, which could be anywhere in the country. The main services and products on offer at our place of business for our highly esteemed customers includes a standard cooking gas. Other business ventures which we engage in includes sales of gas cookers, sale of cooking gas cylinders, also other gas cooker accessories like burners etc we also handle repairs and gas cooker servicing.

We are open to the use of latest technology in the cooking gas plants industry. No doubt our excellent customer service and the range of additional complementary services we offer will position us to become one of the most preferred cooking gas plants in town. Researching and defining our markets, strategies, mission and financials will provide insight and prepare the owner to successfully run the cooking gas.

The Cooking Gas Plants industry over the years has experienced a modest amount of volatility. As a matter of fact, as more Nigerians switch from kerosene stoves to gas cookers, the demand for cooking gas also increase. So also, as per capital disposable income continued to increase, some household, even people in a smaller apartment would choose to go for gas cooker even if it is camp gas as against settling for the not too pleasant coal stove or kerosene gas.

Just like other industry, the cooking gas plants industry has also experienced its fair share of ups and downs over the last five years. As a result of restiveness in the Niger Delta area of Nigeria and also the recent fall in global oil and gas prices. The industry is known to employ several thousands of people. There are no cooking gas plant companies that can boast of having the lion share in the Nigeria market; the industry is pretty much open for competitions. Although the cooking gas plants industry can be said to be a competitive industry, but it does not in any way stop entrepreneurs who are creative and financially capable to still make headway in the industry. It is indeed a profitable industry especially when the business is well located.

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Gas(LPG) Retail Business Plan

Gas(LPG) Retail Business Plan Overview

This Gas(LPG) Retail Business Plan focuses on the informal retail of Liquefied Petroleum Gas ( LPG) commonly known as Gas. “ Informal “ is in the sense these are comparatively small businesses operating in a relatively relaxed manner as compared to the ‘formal’ like branded petrol stations and their more established agents like supermarkets.

The Gas(LPG) Retail Business involves consumers exchanging their empty gas cylinders with a full refilled cylinder at a fee. The retailer takes the empty cylinder to a wholesaler who r efills it at an agreed price the n sells to the next customer.

Gas retail as of the nature common in estates and smaller towns, where the dealers are independent selling the brands of different oil companies, operate s on a legal grey area. Legalities touching on licensing, wholesale sour ces , equipment, location and setting. The fact that many are ab le to acquire county government business permit licenses, survive and thrive does not sanitize the illegal aspects of t he business, and if the law was to be strictly implemented many of them wo uld be forced to close or realign their businesses.

In no way does this mean that the business is not viable or that there are no retailers operating within the law. Not at all. As you will see in this survey consumption of gas is growing, and opportunities abound in some locations.

Before we get to the actual figures on Capital, Revenue & Margins, Competition & Survival, Consumer Behavior, Tips, Tricks and more a little background of the LPG business in Kenya will be of help in understanding the industry, legal loopholes, possible opportunities and trends.

LPG Industry in Kenya

Trade in LPG is to a very large extent guided by the Energy Act 2009 and regulated by th e Energy Regulatory Commission. Others who have a say in different licensing aspec ts of the business include county governments and state organizations like Energy Regulatory Commission and National Environment Management Auth ority (NEMA).

Prior to 2009 g as cylinders were locked to particular oil companies that marketed them. This was through company specific cylinder valves. For instance a Totalgaz cylinder valve from Total Kenya could only fit a Totalgaz cylinder and so forth.

As a consumer it was not possible to interchange a Total Cylinder with a K – Gas. This meant that if your Totalgaz run out, you had to look for a Total Petrol Station for a refill. If there was a Kenol Kobil Petrol station located a hundred meters from your house and the Total station 2 kilome ters away, then you had no option but to transport your cylinder to the latter in exchange for another.

In 2009 the government through legislation decided that gas cylinder valves were to be standardized. Out went the company specific valves and in came the universal valve which could fit any gas cylinder irrespective of the brand . The standardization was partially in response to pressure from small independent oil marketers who felt without such a move the re was no way they could compete in a market dominated by big wel l funded multinationals.

Majority of the consumers are not aware of cross filling and other workings of the LPG industry . All they want is gas, and conveniently so.

Big oil companies have started pushing for the reintroduction of company specific valves, quoting safety concerns, revenue leakages and tax evasion by the illegal wholesalers. The government has not shown any indication of reversing the 2009 legislation . Perhaps before a blanket reversal there will be more efforts to have the ERC and other regu latory bodies like NEMA and the police reign in on cross refilling and illegal refilling.

Meanwhile some companies have started experimenting with RFIDs to trace the movement of their cylinders; from their depot s to the consumer and back. It’s still early to determine the success of such efforts . Other companies are using universal but self sealing valves, meaning the cylinder protects itself from refilling by other wholesalers. It will take quite some time for these measures to have any impact since many cylinders are circulating within the informal channels.

Despite all the hiccups about 95% of the oil companies who are members of the cylinder exchange pool consider the LPG business profitable. The profits and relatively high in the business will continu e to attract illegalities.

Download Gas(LPG) Retail Business Plan / guide here

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From left, U.S. Sen. Joe Manchin and Gary Lambert, Competitive Power Ventures CEO, in December 2022 announced the natural gas-fired power plant and carbon sequestration project in Doddridge County. The West Virginia Public Service Commission on Monday approved the siting certificate for the more-than-$3 billion project. (File Photo)

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Rays-Hines Historic Gas Plant District redevelopment agreement released

ST. PETERSBURG, Fla. — The Historic Gas Plant District redevelopment agreement with the Rays-Hines Group was released by the city of St. Petersburg on Thursday to give council members two weeks to digest it before the committee of the whole meeting.

What You Need To Know

Gas plant agreement released two weeks before the next st. petersburg city council meeting  as part of the agreement, rays-hines will pay $105,268,000 for 36 acres if approved, construction will begin early next year.

“This has been highly anticipated to get these documents,” said city council member Copley Gerdes. “I’m excited to review what’s been given to us.”

The 184-page agreement was the result of more than six months of negotiations between the city and Rays-Hines. It outlines how they plan to transform the Tropicana Field site and honor the Black residents who were forced out of the Gas Plant area in the 1980s to build the Trop.

The site-plan calls for Rays-Hines to pay $105,268,000 for 36 acres. In Phase One, an African American History Museum would be built along with 1,500 residential units, a 500-room hotel, a Class-A medical office, stores, restaurants and conference space.

If approved, construction would begin early in 2025. Three more phases will be completed with affordable workforce housing, a renewed Booker Creek, at least one daycare, a library, 14 acres of open space, more hotels, medical offices, retail and residential units. The last phase is scheduled to begin in 2035.

“The development will include more affordable and workforce housing than originally proposed, greater assurances for Minority Business Enterprise (MBE) and Disadvantaged Worker participation,” said city spokesperson Erica Riggins. “Additionally, the agreement limits the city’s financial risk by capping infrastructure contributions and making Rays/Hines responsible for all cost overruns.”

The agreement also has economic equity and inclusion, which has been important to Mayor Ken Welch. Rays-Hines will pay $50 million for the Woodson African American Museum, affordable housing, minority business development and workforce training.

“We’ve got a lot of positive feedback throughout the conversation,” said Welch. “I’m really excited about where we are.”

City council members will discuss the proposed Gas Plant redevelopment agreement on May 9.

“I’m excited to have that conversation with all of my colleagues in the sunshine,” Copley said. “I think they’re excited to have that too and I’m looking forward to be able to ask a lot of questions of the Rays. We haven’t been able to do that.”

The Rays-Hines $1.3 billion ballpark development agreement will be discussed at a meeting on May 23. The city council is expected to vote on both agreements in June.

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Strict new EPA rules would force coal-fired power plants to capture emissions or shut down

FILE - The Marshall Steam Station coal power plant operates March 3, 2024, near Mooresville, N.C. A rule issued April 24, 2024, by the Environmental Protection Agency would force power plants fueled by coal or natural gas to capture smokestack emissions or shut down. (AP Photo/Chris Carlson, File)

Environmental Protection Agency Administrator Michael Regan announces final standards to reduce pollution from power plants during an event at Howard University on Thursday, April 25, 2024, in Washington. (AP Photo/Kevin Wolf)

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WASHINGTON (AP) — Coal-fired power plants would be forced to capture smokestack emissions or shut down under a rule issued Thursday by the Environmental Protection Agency.

New limits on greenhouse gas emissions from fossil fuel-fired electric plants are the Biden administration’s most ambitious effort yet to roll back planet-warming pollution from the power sector, the nation’s second-largest contributor to climate change . The rules are a key part of President Joe Biden’s pledge to eliminate carbon pollution from the electricity sector by 2035 and economy-wide by 2050.

The rule was among four measures targeting coal and natural gas plants that the EPA said would provide “regulatory certainty” to the power industry and encourage them to make investments to transition “to a clean energy economy.” The measures include requirements to reduce toxic wastewater pollutants from coal-fired plants and to safely manage coal ash in unlined storage ponds.

EPA Administrator Michael Regan said the rules will reduce pollution and improve public health while supporting the reliable, long-term supply of electricity that America needs.

“One of the biggest environmental challenges facing our nation is man-made pollution that damages our air, our water and our land,” Regan said in a speech at Howard University. “Not only is this pollution a major threat to public health — it’s pushing our planet to the brink.’'

Regan called the power plant rules “a defining moment” for his agency as it works to “build a cleaner and healthier future for all of us.’'

The plan is likely to be challenged by industry groups and Republican-leaning states. They have repeatedly accused the Democratic administration of overreach on environmental regulations and have warned of a looming reliability crisis for the electric grid. The rules issued Thursday are among at least a half-dozen EPA rules limiting power plant emissions and wastewater pollution.

Environmental groups hailed the EPA’s latest action as urgently needed to protect against the devastating harms of climate change.

The power plant rule marks the first time the federal government has restricted carbon dioxide emissions from existing coal-fired power plants. The rule also would force future electric plants fueled by coal or gas to control up to 90% of their carbon pollution. The new standards will avoid 1.38 billion metric tons of carbon pollution through 2047, equivalent to the annual emissions of 328 million gas cars, the EPA said, and will provide hundreds of billions of dollars in climate and health benefits, measured in fewer premature deaths, asthma cases and lost work or school days.

Coal plants that plan to stay open beyond 2039 would have to cut or capture 90% of their carbon dioxide emissions by 2032, the EPA said. Plants that expect to retire by 2039 would face a less stringent standard but still would have to capture some emissions. Coal plants that are set to retire by 2032 would not be subject to the new rules.

Rich Nolan, president and CEO of the National Mining Association, said that through the latest rules, “the EPA is systematically dismantling the reliability of the U.S. electric grid.’'

He accused Biden, Regan and other officials of “ignoring our energy reality and forcing the closure of well-operating coal plants that repeatedly come to the rescue during times of peak demand. The repercussions of this reckless plan will be felt across the country by all Americans.”

Regan denied that the rules were aimed at shutting down the coal sector, but he acknowledged in proposing the power plant rule last year that, “We will see some coal retirements.”

The proposal relies on technologies to limit carbon pollution that the industry itself has said are viable and available, Regan said. “Multiple power companies have indicated that (carbon capture and storage) is a viable technology for the power sector today, and they are currently pursuing those CCS projects,’' he told reporters Wednesday.

Coal provided about 16% of U.S. electricity last year, down from about 45% in 2010. Natural gas provides about 43% of U.S. electricity, with the remainder from nuclear energy and renewables such as wind, solar and hydropower.

Dan Brouillette, president and CEO of of the Edison Electric Institute, which represents U.S. investor-owned electric companies, said he was “disappointed” that the EPA “did not address the concerns we raised about carbon capture and storage.’' While promising, the technology “is not yet ready for full-scale, economy-wide deployment,’' said Brouillette, who served as energy secretary in President Donald Trump’s administration.

The rules initially included steps to curb emissions from existing natural gas plants, but Regan delayed that aspect of the rules until at least next year after some moderate Democrats and the gas industry warned that the plan could affect grid reliability. Regan also said he wanted to address complaints from environmental justice groups that the earlier plan allowed too much toxic air pollution from gas-fired plants near low-income and minority neighborhoods.

Even so, the rules issued Thursday complete “a historic grand slam” of major actions by the Biden administration to reduce carbon pollution, said David Doniger, a climate and clean energy expert at the Natural Resources Defense Council. The first and most important action was passage of the 2022 climate law, officially known as the Inflation Reduction Act, he said, followed by separate EPA rules targeting tailpipe emissions from cars and trucks and methane emissions from oil and gas drilling.

Together, the climate law and the suite of EPA rules “are the biggest reductions in carbon pollution we’ve ever made and will put the country on the pathway to zero out carbon emissions,’' Doniger said.

The nation still faces challenges in eliminating carbon from transportation, heavy industry and more, said Abigail Dillen, president of the environmental group Earthjustice, “but we can’t make progress on any of it without cleaning up the power plants.’'

Jim Matheson, CEO of the National Rural Electric Cooperative Association, called the EPA rule “unlawful, unrealistic and unachievable,” adding that it faced a certain court challenge. The rule disregards the Supreme Court’s 2022 decision that limited the agency’s ability to regulate carbon pollution under the Clean Air Act , Matheson said.

“This barrage of new EPA rules ignores our nation’s ongoing electric reliability challenges and is the wrong approach at a critical time for our nation’s energy future,” said Matheson, whose association represents 900 local electric cooperatives across the country.

The EPA rules would not mandate use of equipment to capture and store carbon emissions — a technology that is expensive and still being developed. Instead, the agency would set caps on carbon dioxide pollution that plant operators would have to meet. Some natural gas plants could start blending gas with other fuel sources that do not emit carbon, although specific actions would be left to the industry.

Still, the regulation is expected to lead to greater use of carbon capture equipment. Only a handful of projects are operating in the country despite years of research.

The EPA also tightened rules aimed at reducing wastewater pollution from coal-fired power plants and preventing harm from toxic pits of coal ash, a waste byproduct of burning coal.

Coal ash contains cancer-causing substances like arsenic and mercury that can leach into the ground, drinking water and nearby rivers and streams, harming people and killing fish. The waste is commonly stored in ponds near power plants. The EPA issued rules in 2015 to regulate active and new ponds at operating facilities, seven years after a disaster in Kingston, Tennessee, that flooded two rivers with toxic waste and destroyed property.

Environmental groups challenged that rule, arguing it left a large amount of coal ash waste unregulated by the federal government. The rule issued Thursday forces owners to safely close inactive coal ash ponds and clean up contamination.

A separate rule will reduce toxic wastewater pollution by 660 million pounds annually, according to federal officials. It’s a reversal of the Republican Trump administration’s push to loosen coal plant wastewater standards.

The Biden rule comes nearly a decade after former President Barack Obama first tried to set limits on carbon pollution from U.S. power plants. His 2015 Clean Power Plan was blocked by the Supreme Court and later rolled back by Trump. Trump’s plan was also blocked by a federal court .

Associated Press writer Michael Phillis in St. Louis contributed to this story.

Follow the AP’s coverage of the EPA at https://apnews.com/hub/us-environmental-protection-agency .

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U.S. natural gas trade will continue to grow with the startup of new LNG export projects

In our recently released Short-Term Energy Outlook (STEO), we forecast that U.S. liquefied natural gas (LNG) exports will continue to lead growth in U.S. natural gas trade as three LNG export projects currently under construction start operations and ramp up to full production by the end of 2025. We also forecast increased natural gas exports by pipeline, mainly to Mexico. In our STEO forecast, net exports of U.S. natural gas (exports minus imports) grow 6% to 13.6 billion cubic feet per day (Bcf/d) in 2024 compared with 2023. In 2025, net exports increase another 20% to 16.4 Bcf/d.

We forecast that U.S. LNG exports increase 2% in 2024 to average 12.2 Bcf/d. In 2025, we forecast that LNG exports grow by an additional 18% (2.1 Bcf/d). We forecast U.S. natural gas exports by pipeline to grow by 3% (0.3 Bcf/d) in 2024 and by 4% in 2025. We expect pipeline imports to decline by 0.4 Bcf/d in 2024 and then increase slightly (0.1 Bcf/d) in 2025.

In 2024–25, we forecast that existing U.S. LNG export facilities will run at similar utilization rates as in 2023. Annual maintenance typically occurs in the spring and fall, when global LNG demand is lower and temperatures are mild. In April and May 2024, we expect LNG exports to decline while two of the three trains at the Freeport LNG export facility undergo annual maintenance . Later in 2024, we expect that Plaquemines LNG Phase I and Corpus Christi Stage 3 will begin LNG production and load first cargoes by the end of the year. In 2025, the developers of Golden Pass LNG plan to place in service the first two trains of this new three-train LNG export facility.

We forecast an increase in U.S. natural gas pipeline exports to Mexico as several pipelines in Mexico—Tula-Villa de Reyes, Tuxpan-Tula, and Cuxtal Phase II connecting to the Energía Mayakan pipeline on the Yucatán Peninsula—become fully operational in 2024–25. These pipelines started partial service in 2022–23 but have not been operating at full capacity. Also, flows via the Sur de Texas-Tuxpan underwater pipeline are likely to increase slightly in 2024 when it begins delivering natural gas from the United States to Mexico’s first LNG export project, Fast LNG Altamira .

U.S. natural gas pipeline imports from Canada remained relatively unchanged over the last two years (2022–23), averaging 8.1 Bcf/d. We expect pipeline imports from Canada to remain a key supply source, particularly for the U.S. Midwest region during winter months.

U.S. LNG imports , which primarily serve New England and generally peak in winter months , declined slightly in 2023 , mainly because of record-warm winter weather . We expect LNG imports to average about 0.1 Bcf/d in 2024–25 and continue to serve as a marginal supply source during periods of high demand, particularly in the winter months.

Principal contributor: Victoria Zaretskaya

Tags: forecasts/projections , natural gas , international , monthly , pipelines , STEO (Short-Term Energy Outlook) , exports/imports , United States , LNG (liquefied natural gas) , Canada , Mexico

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Lufthansa looks to strong summer to shake off strike costs

Lufthansa hopes to claw back its strike-related losses in the second half of the year, the German flag carrier said on Tuesday, pointing to a strong summer season with bookings up 16% compared with the previous year.