EXPLAINER: Requirements for gas storage, filling business

The establishment of LPG (Liquefied Petroleum Gas) companies in Kenya has been on a steady rise in the recent past as demand for gas increases.

On February 2, a huge gas explosion in the Embakasi area, Nairob left several people dead and scores injured.

So far, seven people have been confirmed dead.  

But what does it take to start an LPG refilling business since many people now prefer to use gas for cooking?

Apart from the Energy and Petroleum Regulatory Authority, a person venturing into the business will require approval from other regulators among them the Kenya Bureau of Standards, Kenya Revenue Authority and Anti Counterfeit Agency.

Others are the Directorate of Occupational Health and Safety, National Environment Management Authority and the County Executive Committees (CECs) in charge of public health, environment and energy.

All businesses in the LPG industry must be licensed by EPRA. They include importers, exporters, manufacturers, wholesalers, distributors and retailers.

Previously, before June 25, 2019, when new LPG regulations were gazetted, this requirement was not fully enforced, which led to illegal trading, illegal rebranding, illegal refilling and counterfeiting of gas cylinders.

Regulators further ensure oil marketing companies, also referred to as brand owners, deploy safe cylinders that have a unified valve as prescribed by the Kenyan standard.

To get the EPRA license, you need to provide your business location. You must also meet the safety requirements for LPG to avoid disasters like fire.

One is required to provide a Qualitative Risk Assessment which helps indicate the effect of a typical blast and offers a review of the safety of the surrounding areas.

Qualitative Risk Analysis is the process of prioritising risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact.

It is a technique for discovering the probability of a risk event occurring and the impact the risk will have if it does occur.

The site must also be within a radius of at least 100 meters from any existing third-party LPG refilling plant and must be at great distances from residential buildings, public buildings, places of assembly, industrial sites, or pressurised LPG tanks.

One is required to register with EPRA and then apply for a storage and filling licence.

A notification of inspection is issued before the actual assessment is done. If approved one is given a storage and filling licence.

One also requires a trading license.  Just like any other business, you need a trading license which is obtained from the local authority or county government offices

A fire license is also needed. This is taken as proof that you meet the requirements to avoid fires and in case of fires, you can control it.

KRA certificate is another requirement. The certificate is for ensuring that your business complies with tax requirements.

Weights and measures certification is needed.

This certificate is taken to ensure that your gas meets the required weights and measures. Cylinder filling and handling are also assessed before getting the go-ahead to start a business.

Both full and empty LPG cylinders can cause serious injury during manual handling and, where possible, handling should be mechanised.

Manual handling of cylinders should be done with proper personal protective equipment. A mishandled cylinder can cause injury and damage or result in an uncontrolled release of LPG.

Licensing is done through the Petroleum Licensing Committee of the EPRA in accordance with the requirements of the Energy Act, 2019 and the Petroleum Act, 2019 and applications for licences are evaluated within 30 days from the date of receipt of such applications.

A licence issued under the Energy Act, 2019 and the Petroleum Act, 2019 and is valid for one calendar year. Please note that all petroleum business licences issued by EPRA are free of charge.