"The LP industry has potential in Sri Lanka since only 30 percent of the total population use LP Gas in the country. As a result, the recently introduced LPG price formula has growth benefit as it has given the assurance to the company to pursue investment plans and diversify into different areas in the future," Finance Director and Country Controller of Shell Gas Lanka, Rimoe Saldin said.

Shell Gas Lanka Limited (SGLL) said that the company is looking forward to bring down the selling price of the LPG domestic gas prices when the bi-monthly pricing formula comes into effect in next month.

Commenting on the commencement of the oil exploration in Sri Lanka, "SGLL is eager to buy gas within Sri Lanka if the oil exploration process is successful. If the gas produced in Sri Lanka is up to the required standard and economical, we will hub on purchasing gas from Sri Lanka and pass on the advantage to our customers", he noted.

"At present SGLL has an 80 percent market share in the local market and depends on 100 percent gas imports," he said.

"At the moment there is a 10 per cent drop in LP Gas demand due to the increase of world prices. Yet we are promoting using LPG for commercial purpose as an alternate for electricity," Saldin said.

SGLL is in the process of re-qualifying on its storage tanks at Kerawalapitiya plant with a cost of US$ two million. The re-qualifying of one tank has already commenced and after re-qualifying the balance three, the company is looking forward to re-qualify their under sea pipelines with the assistance of Colombo Dockyards Plc.

Further they have a two million cylinder population and are expected to release another 100,000 cylinders to the market within the year. This is to replace old ones and capture new consumers.

SGLL has introduced an improved customer seal on its 2.3 Kg, 12.5 Kg and 37.5 Kg LP Gas cylinders. This is in line to assure the customers receive the right quality and quantity of product. The new seal, which covers the valve and cap of the cylinder, is designed to enhance protection against tampering by unscrupulous parties.