Q Gas 2025 Expansion Highlights
Q Gas 2025 Expansion Highlights
Q Gas and Power Ltd is set to expand its operations by generating 2 Megawatts (MW) of electricity at its flagship location: No. 561 Ikorodu Road, Lagos.
This strategic expansion positions Q Gas and Power as a frontrunner in Nigeria’s energy sector, leveraging its innovative gas and power distribution systems, valuable assets, and established market presence.
Key Highlights of Q Gas and Power:
Valuable Land Asset:
Q Gas operates on a prime 10-plot land asset, valued at approximately ₦2.5 billion.Established Track Record:
Since its inception in 2018, Q Gas has consistently delivered value. Despite operating at only 20% capacity, the business has the potential to generate an annual turnover of ₦0.5 billion.Proven Growth Strategy:
The expansion includes setting up nine additional mini gas plants, complementing the success of its existing branch at Oluwalogbon, Ketu, Lagos.Innovative Technology:
Q Gas has transformed Nigeria’s LPG market with its pioneering mobile application, enabling customers to order LPG online—delivering convenience and accessibility.Strategic Off-Taker Agreements:
Discussions are in advanced stages with nearly 10 potential off-takers for the proposed 2MW Compressed Natural Gas (CNG) power plant. These include major organizations like First Bank, UBA, and Globacom.
Objective of the Expansion:
The project aims to tackle Nigeria’s growing energy challenges by providing reliable, clean, cost-effective power solutions to businesses and communities. The 2MW power plant will serve Lagos’s industrial and commercial hubs, building on Q Gas’s proven capacity to deliver exceptional value.
Funding Requirements:
- Total Amount: ₦1.5 billion.
- Purpose: Construction, procurement, and installation of the 2MW CNG power plant, along with operational expansion.
- Equity Contribution: The proprietor and stakeholders will contribute 20% of the project cost—demonstrating commitment and mitigating investor risk.
Economic and Market Impact:
- Projected annual turnover will exceed ₦1 billion within the next three years.
- The project will create direct and indirect employment opportunities, contributing to Nigeria’s energy transition and reducing reliance on grid electricity.
Competitive Advantage:
Q Gas and Power’s strengths include:
- Prime location on Ikorodu Road.
- Innovative technology, such as its LPG delivery app, has disrupted traditional energy distribution.
- Existing relationships with blue-chip clients, ensuring market confidence.
Conclusion:
By combining innovative technology, valuable assets, and strategic growth initiatives, Q Gas and Power Ltd is poised to deliver significant returns for stakeholders while addressing Nigeria’s urgent energy needs.
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