A Sample Business Plan for Starting an LP Gas (Cooking Gas) Distribution/Wholesale and Retailing Business in Tanzania: A Business Plan for one Quick Gas Limited

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Our sample LPG  business plan helps business owners and entrepreneurs like you create a business plan in less time for investor funding, bank loan, compliance with government authorities and for self-learning. 

EXECUTIVE SUMMARY

Overview

There has been a substantial raise in the consumption of liquefied petroleum gas (LPG) in the last ten years. The annual LPG consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019. Furthermore, with continued economic development in Tanzania as well as increasing awareness in the use of LPG as the best alternative to firewood and charcoal, the consumption of LPG will grow to a significantly high level in both urban and rural areas. And with the Tanzanian government’s ambition to scale up the use of LPG across the nation, it will lead to increase in LP Gas demand and supply to hotels, homes, factories, boarding schools, army camps, mines as well as petrol stations.

Although competition in the LP Cooking gas business has increased over the past few years in Tanzania, with our effective marketing and supply strategies, building close client relationship as well as providing complementary services, the newly-established LP Gas retailer like Quick Gas can still be profitable and assured of recovering its entire investment.

Customer Problem

Our business aims to solve the problem of limited access to clean and affordable energy for cooking and  purposes in Tanzanian households. Many households rely on traditional fuels such as firewood and charcoal, which are not only expensive but also harmful to health and the environment.

The Company

Quick Gas Limited is a newly-established LPG distributor/retailer in the Kasulu District of the Kigoma Region in Tanzania. Our mission is to provide clean and affordable energy solutions to address the problem of limited access to such resources in Tanzanian households.

Products and Services:

Our products and services include:

  • LP Gas (cooking gas) in 6kg, 15kg, 30kg and many other volumes.
  • LPG cylinders of various sizes, colour and design.
  • Cookers and fittings such as pipes, gauges etc.
  • Site installation services.
  • Home delivery of products and services.

Customers/clients:

Quick Gas will deliver LP Gas to household, industrial and commercial customers in Kasulu District in the Kigoma Region and will expand to other location of the city after three years of services.

Competition

Quick Gas Limited will have both direct and indirect competitors but our competitive advantage is that majority of the population will opt for LP Gas rather than buy firewood or charcoal, and there are more customers to go round.

Financial Considerations

The financial projection of this business plan is attached as an spreadsheet file.

Objectives

The underlying objectives of QUICK GAS limited is stated as follows:

  • To be known as a top quality, safe and reliable LP Gas delivery service provider in Tanzania.
  • To achieve and preserve a high gross profit margin.
  • To expand to other location within the city after three years of service in the Kasulu district of Kigoma Region.
  • To achieve 25% of the market share within the first three years.
Form of Business: Limited Liability Company
State of Business: Start-up (new business)
Managing Director: Lawrence Mambo
Business Development Consultant: Hussein A. Boffu
Opening Hours: Mondays to Saturdays: 7 AM – 7 PM.

Sundays: 12 PM – 6 PM

Get the Full Version Now

In the full version, you will have access to the following table of contents:

EXECUTIVE SUMMARY

  • Overview
  • The Company
  • Products and Services
  • Customers/clients

BUSINESS DESCRIPTION

  • Problem Statement
  • Mission
  • Vision
  • Objectives
  • Our Values
  • Keys to Success

PRODUCTS AND SERVICES

MANAGEMENT TEAM

MARKET ANALYSIS AND TRENDS

  • Market Research
  • LP Gas Import in Tanzania
  • LP Gas Industry Trends
  • LP Gas Industry Outlook
  • Our Target Market
  • Core needs and pain points
  • Behavior Patterns

COMPETITOR ANALYSIS

  • Direct Competition
  • Indirect Competition
  • Competitive Advantage

SALES AND MARKETING PLAN

OPERATIONAL PLAN

  • Opening Days/Hours
  • Location
  • Setup Cost
  • Machinery/Equipment Requirement

SWOT Analysis

PEST Analysis

Risks and Mitigation

  • Identified Risks
  • Mitigation Strategies

FINANCIAL PLAN AND PROJECTION

 

For the complete business plan for starting and running a LP Cooking gas business in Tanzania, make a payment of $200 (or its equivalent in Tanzanian Shillings TZS 400,000) through Tgo pesa, M-pesa to this number: +255655376543.

Once your payment is done, send an SMS to +255655376543 with the following details:

  • Your full name.
  • Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com. The moment we receive your email or SMS and we confirm your payment, the plan will be delivered to your email address (in docx) within fifteen minutes.

You can then download it and read it on your smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

Networking is Key to Driving Growth in the Oil, Gas and Energy Industry: How to Do It Well

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When the oil and gas economy is good, networking is important. When activities also decline during periods of economic meltdown in the sector, networking is also essential.

Your network is a crucial tool for professional and business growth.

This is an industry of people doing business with people. People in the oil and gas industry prefer to do business with people they know and like. So, proper networking within this industry will go a long way to ensure your success, says Mark LaCour, the Director of Modal Point.

To drive growth to the industry, it is important to join forces, collaborate with others, openly sharing knowledge and insights for professionals and personal growth.

This article explores some tips on the right way to network in the oil and gas industry.

1. Identify your purpose for networking.

To make the most of your networking activities, you must have clear goals in mind. You must be clear of what you really want to achieve from the network.

A simple goal can be like this: “I want to learn about how to get involved in the oil and gas projects in Tanzania.”

Or it could be: “I want to learn how Shell’s recruitment system works.”

The clearer you are about what you want to achieve in your networking efforts, the more you succeed.

2. Start a conversation with great questions.

It can be a little frustrating to open a conversation with strangers. Asking questions is a great way to open a conversion. It is also a great way to build trust with people you meet during industry events, meetings and conferences.

You could start by saying:

“Where do you work?”

“How long have you been in Tanzania?”

“Is this your first time of attending this event?”

Networking is not just sending connection requests on LinkedIn or other social media platforms. It is also not just exchanging business cards and leaving, like many people do.

Once you’re given a card, treat it with care. Read it. And comment on the card. Say, “Looks like a great company.”

Avoid asking for referral, support or promotion of your services once you meet new people in your initial networking activities. It will never work out. This is because a new person you meet has two kinds of fear: fear to be taken advantage of and fear to be manipulated. Your job is to eliminate these fears in your initial conversation with a person you come in contact. And the best way is by asking questions about them.

You could start with phrases such as: What do you do? What are the biggest challenges in your work/business?

Once you ask these kinds of questions, people feel you care about them. This builds friendship and a relationship based on trust.

3. Follow up your prospects.

People are busy.

Sending a thank-you email to someone you’ve recently met at an industry networking event, such as a trade show, conference or happy hour, is a great way to build a strong professional relationship.

Say something like this:

Thank you for your offer to connect me with your business contacts.

Final Tip

The oil and gas industry is a people industry.

Your success in the industry depends on the relationship you build with industry people. Your ability to create and expand valuable connections within the sector will give you a better chance to get your foot in the door and unlock many opportunities.

Remember:

Networking is all about helping, giving value and supporting others.

Top 10 Oil and Gas Companies to Work with In Tanzania and Sub Saharan Africa

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The future for the oil and gas industry in sub-Saharan Africa is bright. Especially with offshore exploration and field development. Important infrastructure is well underway, including the EACOP pipeline and the refinery in Uganda. In addition, Tanzania and Mozambique are some of the new natural gas development in Sub-Saharan Africa.

Furthermore, the downstream fuel industry is rapidly growing across the country, with many big and small players  have plans for aggressive investment and rapid expansion across the country in the coming years

However, the market has changed over the last few years. In a high oil price, the opportunities are different from those in a lower oil price environment.

Despite challenges, there are countless opportunities and possibilities for talented people like you to create or find a great job across the entire value chain of the oil and gas sector.

Suppose your special skills could be used to get more valuable results for different oil and gas employers. Remember, in oil and gas; everything is a result.

Whether you are a job seeker or a job changer, this article will give you insight into the top ten oil and gas companies to work within Tanzania and across Sub-Saharan Africa.

1—Shell Tanzania

www.shell.co.tz

Royal Dutch Shell, usually known simply as Shell Tanzania Limited, is one of the supermajors that dabble into everything: discovering, developing, extracting, refining, transporting, to marketing oil and gas-related products.

Shell Tanzania Limited and its joint venture partners London-based Ophir energy and Singapore-based Pavilion energy operate Area 1 and Area 4 offshore Tanzania.

Shell also partnered with Norway’s Equinor, ExxonMobil. These five firms join forces to build the liquefied natural gas plant (LNG) in Tanzania.

From what I understand, it can be a little bit hard to get hired by major oil and gas companies such as Shell, Exxon Mobil compare to small independent operators, unless you are an engineer, environmental, HSE officer, Financial analyst, Geoscientist, or you have years of oil industry experience. 

Most new industry entrants start by working with a contractor and getting hired by these big boys later. Click here to explore career opportunities at Shell 

2–Equinor

www.equinor.com

Norway’s Equinor (Previously known as Statoil) partnered with Supermajor US Exxon Mobili and Tanzania oil company TPDC. According to the company website, The joint venture is composed of Equinor Tanzania (65%), ExxonMobil(35%), and Tanzania petroleum development corporation (10%) and have 20 trillion cubic feet of natural gas offshore Tanzania.

Job at equinor is highly sought after, so you need to make sure your resume and cover letter are top-notch.

Click to explore a career at Equinor Tanzania.

3–Total Tanzania

www.total.co.tz

Total Tanzania Limited is a Marketing and Services subsidiary of Total, a multinational energy company operating in more than 130 countries and committed to providing sustainable products and services for its customers.

For over 50 years, Total Tanzania limited has remained the leader in the downstream sector of the Tanzania oil and gas industry with an extensive distribution network.Total history since its initial operations in Tanzania in the 1960s and the evolution of its logo and network of service stations

To apply for a position at Tanzania and the Total group, visit the Total recruitment portal here

4–Songas limited

www.songas.com

Songas generates about 180MW of electricity or 25% of the electricity supply in the country. The natural gas transported by pipeline over 225 kms from Songosongo island to Dar es Salaam is responsible for maintaining the gas pipeline wayleave. Excess gas is used by over 28 factories in Dar es Salaam

5–Pan African Energy Tanzania Limited

Mauritius -based firm Pan African energy is the first gas producer in Tanzania. They started producing gas in the Songo Songo field in 2004. Songo Songo field supply gas for power generation to various industrial customer

6–Halliburton

www.Halliburton

Get hired by Halliburton, and you could travel the world. HAL is one of the largest service oil field companies in the world and has two segments. Oil field services and engineering and construction division. Don’t expect to get hired as unskilled labor, and the company does very specialized work. However, the company has many departments, including HR, IT, Accounting, Logistics, and procurement, and offers a broader range of opportunities for many professions.

7–Maurel & Prom Exploration and Production Tanzania Limited

France’s Maurel et Prom involved in exploration and production, and supply of natural gas in Tanzania. The company started to produce natural gas in 2015 at Mnazi Bay gas field

8–Aminex

It is also known as Ndovu resources Limited. K-based Aminex smaller independent Oil and Gas Production and Development Company. The company has a small gas-producing field in Kiliwan North started producing gas in 2016. According to their website

“The Company has finalized the Chikumbi-1 executive drilling and completions programs, has identified and selected the service companies required to operate all aspects of drilling and, based on a competitive tender process, has selected Sakson Drilling and Oil Services DMCC to drill the Chikumbi-1 well.”

To explore career opportunities, visit the company website  here

9–East Africa Crude Oil Pipeline Project(EACOP)

www.eacop.com

EACOP is the operator 1445 kilometer Uganda Tanzania crude oil export pipeline. Once finished will be the longest heated pipeline globally, despite the recent announcement about suspending the project. I firmly believe the projects will come online as expected once all disagreement resolves.

To explore the position on the project, visit the EACOP website and click on the “Jobs&Tenders” segment. Their website has a comprehensive listing of job openings. Click  Click here to view jobs openings.

10– Intertek

Do you have some experience in nondestructive testing (NDT) and inspection? Do you have a background in chemistry?

If your answer is “Yes” then you should consider a career at Intertek. Because I always see the company advertise to for chemist and lab personnel

Intertek provides petroleum and chemical testing services as well as electrical safety testing and performance testing.

Click here to explore a career at Intertek

Information on fraud Risks

Be careful to screen the fake ads and real ads in your search for oil and gas jobs in Tanzania and Sub-Saharan Africa.

In my experience, actual companies will list their company names and provide a company email address—fake companies always use emails associated with Gmail or Yahoo accounts. Genuine employers will not charge you to apply for a position. Resolve yourself to sending personal information to an unknown company or recruitment agencies.

 

Four Industry Professionals Share How They Find Jobs and Join The Oil and Gas

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One of the biggest challenges to people looking to build a career in the oil and gas sector face is how they can get involved in the oil and gas industry. So I reached out to five oil and gas professionals and asked the following question:

How did you happen to get started in the oil and gas industry?

Alex Athanas

I am a former a  wireline Engineer at Schlumberger. And currently assigned as Engineer in charge for ENI Project in Mozambique.

I studied Bsc. in Telecommunication Engineering from University of Dar es Salaam, during my final year in 2013 I got an opportunity to meet with recruiters from Schlumberger who came to visit College of Engineering and Technology (COET) looking for potential engineering candidate who could join them in their ongoing projects across East and Southern African region.

They invited everyone from engineering and mining background to participate in aptitude exam conducted at the University of Dar es Salaam.

The response was amazing, about 600 candidates participated and only few of us managed to pass this stage.

Thereafter went through series of interview session including oral, presentations and group session. I finally got successful and got assigned to Mtwara, Tanzania as Wireline Field Engineer trainee to work on the then ongoing BG Tanzania operation.

I didn’t actually plan to have a career in the oil and gas industry, but took the opportunity when it presented itself, because the field engineer job seemed interesting, unique, and challenging.
After taking up the role I started with training since I didn’t have oil and gas background, my first training was in Paris France, this was mostly covering introduction to Oilfield and where Schlumberger fit in the market.

My second training was in US, this was bit extensive and long one taking about 4 months covering Wireline operation, crew management, Health, Safety and Environment (HSE) and other specific courses related to Schlumberger operation.

After completing my training, I joined the crew working on BG Tanzania offshore operation. I remember the name of the rig was Deep Sea Metro1 and the first well I logged was Mzia-3 appraisal well.

Since then I have been working on several projects across Sub-Saharan African.

I have been working in emerging market environments in East and South Africa (South Africa, Mozambique, Kenya, Uganda, Tanzania & Ethiopia) and in several west African countries from Cameroon, Ghana, Gabon, Equatorial Guinea and Congo managing wide variety of Wireline and basic Slickline services; working offshore/onshore for international as well as local demanding clients (BG, Total, ENI, Sasol, Ophir, Shell, Tullow Oil, New Age, Maurel & Prom & PanAfrican Energy).
As a wireline engineer, I am responsible for crew safety, providing the client with the excellent data and service quality while adhering to stringent health, safety and environment policies.
The most challenging part of my role as an Engineer in Charge is organizing and tackling an extremely large and varied amount of tasks, ranging from planning my crew to work safely and efficiently, to checking tools making sure all the tools and equipment are operational, to inputting HSE and service quality reports, to speaking with clients on a daily basis. There are so many tasks on my list that it was impossible to complete them all, so I had to learn to prioritize.

My advice for anyone who wants to start out career in oil and gas industry, as this industry is very demanding, fast-paced, and volatile, they need to be prepared to work very, very hard. And long hours. It’s not always fun. But it is rewarding, challenging, and you will learn a lot. Perseverance is key.

I encourage my fellow Tanzanians (especially those who wants to take advantage of business opportunities, graduates and students) to take the time to really learn about the oil and gas industry, especially now this is hot cake and it is fast growing market in East Africa.

Why To Follow: Alex Athanas worked with one of the largest oil service company in the world (Schlumberger), he now works as Engineer in charge for ENI Project in Mozambique.

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Fikiri Ali                                   

    

“I first joined the industry back in 2013 as a planning analyst for Swala oil and gas (T) plc. This role was advertised by radar recruitment Tanzania. Since I worked as a Market Analyst before, radar decided to contact me and I was first interviewed by radar. I did well and I was referred to the Swala CEO for the second interview. I did well and I received a job offer. The company immediately sent me to Australia for a month training before I was fully given responsibilities.”

Why to Follow: Fikiri Ali is an experienced planning analyst with a demonstrated history of working with the oil and gas industry. Skilled in Analytical skills. Financial modeling, strategic planning, social science, and SPSS. Strong business development professionals with a masters degree in Applied Economics and Business from Mzumbe University in Tanzania

Innocent Urio
 

“My journey in the oil and gas industry started in early 2012 just after completing my final-year exams. I was given an offer to work with Schlumberger as Maintenance Engineer after passing series of interviews conducted during a career fair event organized by Schlumberger at College of Engineering and Technology, University of Dar es Salaam, Dar es Salaam”

Describing the top challenge faced in his career Innocent says “The main challenge was during my first two years when you spend most of the time on the field, doing onshore and offshore drilling rigs. This is the time when you are supposed to acquire a lot of skills through on-job and in-class training and you are required to break out and become a standalone competent engineer. The condition for employment during this time was to pass all training, otherwise, you will be dismissed.
The most memorable event in my career occurred in 2015 when I was promoted to General Maintenance Engineer (GME) after passing all interviews and successfully delivering my project presentation in Congo Brazzaville, Pointe Noire. I delivered this presentation in front of Regional Management and it was a pass-or-fail event.”

Why to Follow:Innocent Urio worked with one of the largest oil service company in the world (Schlumberger), he now works downstream (oil marketing company) with Puma Energy Tanzania as an Engineering and Maintenance Manager.

Benoit Gallois

“During my international studies at the Rouen Business School (France), I was part of the Junior Entreprise Alteo Conseil team as Sales Manager. In 2008, I met one of my future partners with whom we started our technical assistance and equipment procurement activities for oil drilling projects in North Africa (Tunisia, Algeria, Libya). This entrepreneurial experience led us to the Arab Spring in 2011 forcing us to put our activities on hold. After a detour via Houston in 2012, I joined Veolia Water in Rep of Congo in 2013 and then a subcontractor for the oil industry, SERVTEC Congo, in 2015 where I will soon take up my position as Deputy General Manager.”

Why to Follow: Benoit Gallois is a commercial  and operations manager of chez SERVTECH International group. He is in charge of the management of 10 business engineers incharge of  45 customers accounts with more than 70% of  turn over in oil and gas industry(Total E&P, Total Distribution, Parenco, Halliburton, TechnipFMC. Subsea7, Baker/GE etc.)

 Writer’s excerpts.
I always compare the oil industry with the military sector. Why? Because it employs people from every profession. Oil and gas companies hire accountants, doctors, legal officers, engineers of all kinds, drivers, security guards, cooks, computer programmers, etc.. And there are different routes to get into this industry. So don’t be daunted of academic background
And the cool thing is that in the oil and gas industry, there are opportunities for people of all ages and shape.

Feel free to contact me if you have any question:

hussein.boffu@tanzaniapetroleum.com

+255655376543