Laugfs invest $80m for South Asia’s largest import/export LPG terminal
Laugfs Terminals Ltd., a subsidiary of Sri Lankan energy conglomerate Laugfs Gas PLC yesterday signed agreements with China Huanqiu Contracting and Construction Corporation (HQC) to construct South Asia’s largest import and export liquefied petroleum gas (LPG) terminal with an investment of over $80 million, Sri Lanka Ports Authority said in its press release.
The firm intends to invest $58.1 million in the first phase of the construction with a capacity of 30,000 MT within the next two years. In the second phase, Laugfs Terminals expects to increase its capacity up to 45,000 MTs, which can accommodate very large gas carriers.
60% of LPG will be re-exported to regional markets, while 30% will be released for the local market (Sri Lanka). It will also have the capability to handle local distribution of LPG through LPG road tanker trucks and will further have an onsite LPG bottling facility.
Laugfs LPG Terminal is the first and largest investment made by any foreign or local company at the Hambantota port.
Elaborating on the company’s expansion plans he pointed that they already acquired two ships and they intend acquiring 10 more ships in order to turnaround Laugfs LPG terminal more effectively and cater to regional demand.
Hambantota port sits in the middle of the world’s largest nautical/shipping routes with over 50% of the world’s nautical traffic. It is also in close proximity to some of the largest emerging LPG markets, including India, Bangladesh, Myanmar, Eastern and Southern Africa to name but a few.
Laugfs Group Managing Director Thilak De Silva stated, “Laugfs Terminal will service vessels from small pressurised vessels to very large gas carriers (VLGCs). The terminal will be absolutely world class, employing the latest state-of-the-art technologies, equipment and systems, with the capability to export, blend and store LPG with an initial capacity of 30,000 MT.”
“We have plans to enhance the capacity with an additional 15,000 MT of LPG, which will boost the handling capacity yield easily to over 100,000 MT and beyond,” he added.
This state-of-the-art facility will have its own dedicated LPG pipelines from the terminal to the exclusively allocated jetty at the port.
Laugfs Terminal at Hambantota will be certified by a leading global inspecting body in every respect and will serve as a common regional break-bulk LPG facility.
