Sri Lanka’s Laugfs Gas strikes partnership with Chinese operator of the Hambantota Port to launch LPG project targeting regional market
Sri Lanka’s Laugfs Gas has reportedly announced that the company has reached a partnership with the Chinese operator of the Hambantota Port in the country’s southern coast to launch a liquefied petroleum gas (LPG) import, blending and re-export process targeting regional markets from this November.
Hambantota International Port Group (HIPG) will provide Laugfs Gas a pipeline connection from the jetty to the LPG distributor’s tank farm in the port to enable gas imports and exports, a joint statement issued on the deal has stated.
“The Laugfs Group’s potential customers are some of the fast growing economies positioned in close proximity to the Hambantota Port like, India, Bangladesh, Maldives, Myanmar and East Coast of Africa.”
W. K. H. Wegapitiya, Group Chairman of Laugfs Holdings has been quoted as saying that Laugfs has plans to bring LPG in larger vessels from international markets like the Gulf, US, and Singapore to Hambantota.
According to Wegapitiya, the port’s two jetties dedicated for oil, gas and petroleum business makes it convenient for the company, especially since the port will provide them with a connection facility to unload vessels through a pipeline connecting to their facility about 3 km from the jetty.
“Once Laugfs terminal opens in November this year, we would be bringing close on 30 ships per month; 20 of them would be owned by us,” he has added.
HIPG chief executive Ray Ren has stated that their first partnership with a local entrepreneur of Laugfs Gas caliber would be a major confidence boost for the Hambantota Port enterprise.
The deal struck by Sri Lanka’s Laugfs Gas with the Chinese operator of the Hambantota is an indication of the growth of local businesses as well as the growing investment opportunities around the island. Through the latest agreement Laugfs will approach regional market with its LPG business. The location of the Hambantota Port in the Indian Ocean maritime rout would make it an excellent position for foreign companies to set up base when engaged in transporting goods through maritime routes. Foreign businesses could look at forming partnerships with successful local entities when expanding operations in the Indian Ocean region or look at setting up base in the Hambantota industrial park located in the port premises.
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