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SINOSURE gives Sri Lanka’s first private sector financing to LAUGFS Gas

SINOSURE gives Sri Lanka’s first private sector financing to LAUGFS Gas

China Export and Credit Insurance Corporation (SINOSURE) has provided Sri Lanka’s first private sector financing to LAUGFS Terminals Ltd. (a subsidiary of LAUGFS Gas) for the construction of the 30,000 metric tonne LPG import and export storage terminals at the Hambantota Port. The transaction was facilitated by the Standard Chartered Bank.

The first phase of the project is expected to be commissioned by the second half of 2018 with a USD 80 million investment for China Huanqiu Contracting and Engineering Corporation (HQC) to construct the 30,000 metric tonne LPG storage terminals, which will be one of South Asia’s largest LPG import and export terminals, eventually followed by the second phase of the project, which will involve the construction of a 45,000 metric tonne LPG storage terminal.

The facility will consist of above-ground spherical LPG storage tanks, each with a 6,000 cubic metre volume and with the proposed cargo heating system at the existing jetty, Very Large Gas Carriers with refrigerated or pressurised cargo will have easy access.

Hambantota Port is strategically located close to emerging LPG markets like Bangladesh and Myanmar, and the new terminal will operate as a central hub for LPG imports, re-exports and supply to retailers, all of which will have huge economic benefits to Sri Lanka.

SINOSURE is a major Chinese state owned enterprise which offers coverage against political risks, commercial and credit risks, including short, medium and long-term export credit insurance, investment insurance, bond and guarantee business, debt and capital retrieval business and credit assessment business.

OSL Take:

SINOSURE’s support to LAUGFS Gas will enable the company to leverage on the strategic location of the new terminal. In addition such a momentous partnership has opened opportunities to other investors who may wish to seek private sector financing for major projects.

OSL being a key though leader and facilitator in the country’s business sector possesses the ability to facilitate such partnerships.

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Article Code : VBS/AT/23082017/Z_1

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