LPG Gas Distribution: Company ABC

Introduction

LPG is one of the fuels that is gaining expansive use all over the world today. Many countries are shifting from the use of unsustainable fuels such as coal, kerosene and biomass to the use of LPG. The fuel’s extensive use is attributed to its reduced environmental impacts. Liquefied petroleum gas has a variety of uses ranging from cooking in residential homes to industrial applications. The gas comprises various gases such as propane and butane. LPG is produced and distributed by various companies across the world and helps in serving the needs of millions of people.

The United Arab Emirates is one of the world’s largest producers and distributors of oil and natural gas in the world. This high production and distribution capacity is attributed to the presence of large oil reserves within the region. Oil and gas production and distribution is one of the major contributors to the gross domestic product of the region. The UAE comprises of seven emirates namely; Dubai, Abu Dhabi, Ajman, Fujairah, Sharjah, Ras Al-Khaimar and Umm Al-Quwain. Although all these emirates engage in the production and distribution of natural gas and oil, Abu Dhabi tops the other emirates owing to the large deposits of oil and natural gas in the region. It controls approximately 94% of the regions oil and gas sector. The aim of this paper is to assess the risks associated with a new LPG distribution company, ABC Gas Company in the UAE.

Source: http://www.marcon.com/print_index.cfm?SectionGroupsID=51&PageID=460.

The ABC Gas Company

Plans are underway to establish ABC Gas Company, an LPG distribution company established in a couple of months in Abu Dhabi, to help in the distribution of LPG to the residents of the emirate and extend its services to the entire UAE. The company is intended to be the largest distributor of LPG in the UAE and plans to provide quality products and services to its customers to gain competitive advantage over the existing companies in the business. The company intends to provide its distribution service to millions of people in the United Arab Emirates, including households, commercial and residential premises.

 The main area of operation of the ABC Gas Company will be the distribution of LPG cylinders to various customers in Abu Dhabi and the distribution of LPG bulk to customers within the UAE. The management of the company will be based on its value of the clients, thus enabling it to deliver as per the requirements of its customers. This way, the company will get an opportunity to succeed amidst stiff competition from the other companies. Moreover, the company will engage in adoption and implementation of new techniques to increase performance. However, there will be the need to test the new operation techniques for safety before implementation.  .

Another activity that the company will engage in is the provision of high quality products and services to its customers. Quality is one of the important factors that determine the success of a business. The business will strive to ensure that the delivery of very high quality products and services. Quality will be achieved through the establishment of quality control and assurance department to oversee the services and products of the company. Moreover, the products will be tested for quality before delivery to the customers. Ensuring delivery of high quality products and services will help the company to control the LPG market in the region.

Moreover, the company will focus on employee satisfaction as a way of ensuring that the business remains relevant in the LPG distribution industry. Employees occupy an integral part in the success of any business and can either cause business failure or success. The company realizes the importance of its employees and intends to equip them will the required skills to perform well in their areas of work. To this effect the company will offer induction trainings before new employees begin working and on the job trainings for continuing employees. Moreover, the company will give incentives such as allowances and rewards to the workers to boost their morale and enable them work with zeal. The health and safety of the employees will also be addressed by the company. This way, cases of sicknesses and workplace injuries will be lessened, reducing absenteeism and increasing productivity. 

The success of a business venture depends on its perception within the community in which it operates. Corporate social responsibility, therefore, serves as a significant tool for ABC Gas Company. Sustainability will be practiced by the business to ensure protection of the environment as well as compliance with the set guidelines and regulations within the industry. Moreover, the company will engage in different community programs as a way of striking a good rapport with the local community.

Products and Services of the Company ABC Gas Company will engage in the delivery of a wide variety of products and services. The main product that the company will deal with are the LPG cylinders. The company is intended to offer both propane and butane gas which come in cylinders of various sizes depending on the requirements of the users. The LPG cylinders offered by the company mainly will come in three sizes; 25LBS, 50LBS and 100LBS…

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