Aug 12, 2008 (LBO) – Sri Lanka’s state-run Ceylon Petroleum Corporation’s (CPC) entry into liquid petroleum gas (LPG) retailing has been pushed to December due to procurement delays, an official said. CPC runs a 50,000 barrels a day refinery, and is the island’s largest petroleum distributor with more than two thirds of the petrol and diesel markets. It is also the sole distributor of aviation fuel and kerosene. CPC needs 150,000 cylinders to start operations, which is expected to cost about 400 million rupees, deputy general manager S K Cyril said.
A cabinet appointed tender board has been appointed according to government procurement rules, which is taking time, he said.
CPC was originally hoping to start LPG retailing by mid 2008.
Cyril said a contract relating to a gas filling plant is in the final stages and a location has already been identified in Sapugaskande to set it up.
The project will be internally finance by the CPC, he said.
Sri Lanka’s LGP business is held by Shell Gas, which bought over a state-run gas distributor. Laugfs, another local company is also in the business using LPG produced as a by-product at CPC’s refinery.