Laugfs Terminals ties-up with China’s HQC to construct LP Gas terminal at Hambantota port



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By Hiran H.Senewiratne


Laugfs Terminals Limited, a wholly owned subsidiary of Laugfs Gas PLC, signed an agreement with China Huanqiu Contracting & Construction Corporation (HQC) to construct a Laugfs LP Gas terminal at Hambantota port.


"This is the first and the largest investment and Sri Lanka’s strategic port at Hambantota will be used to re-export gas to other countries in order promote Sri Lanka as a maritime and energy hub in the region,Group chairman W.K.H Wegapitiya said at the agreement signing ceremony on Tuesday at JAIC Hilton.


This is an investment of over US $ 80 million and the Laugfs Terminal will be one of the LP Gas import and export terminals of its class in South Asia in terms of storage capacity, and will be the most strategic in terms of its location, having access to serve a population of around half a billion within neighboring countries.


"We are now aggressively working to become a leading LP Gas player in other Asian markets and with this significant investment we are planning to become the strongest LP Gas trader and logistics provider in the Indian Ocean, Wegapitiya, said.


"The terminal to be constructed within 24 months will have the capacity of 30,000 metric tons initially with an investment of US $ 58.1 million and we plan to increase it to 45,000 metric tons as the second phase, he said.


Wegapitiya said the terminal will also have the capability to handle local distribution of LPG through LPG road tanker trucks and will have an onsite LPG bottling facility.


A stock exchange filing said the terminal will have storage capacity of 30,000 metric tonnes with provision to expand to another 15,000 metric tonnes.


The Chinese firm is a subsidiary of China National Petroleum Corporation.


The terminal will service vessels from small pressurized vessels to VLGCs (Very Large Gas Carriers).


According to Wegapitiya 60 percent of LPG Gas will be exported while the balance will be used for local needs.


It is also in close proximity to some of the largest emerging LPG markets, including India, Bangladesh, Myanmar, Eastern and Southern Africa, to name a few.


The company has acquired two ships already and plans to acquire more than 10 ships in the future, Wegapitiya said.


"Employment opportunities will be also created in Hambantota in the time period of construction of the terminal and once done, in operational activities of the terminal, he said.


The company acquired the third largest LPG Gas manufactory in Bangladesh recently.


Laugfs Gas PLC has further diversified interests in vehicle emission testing, leisure and property & real estate sectors through Eco Sri, Laugfs Leisure and Laugfs Property.


 
 
 
 
 
 
 
 
 
 
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