Gas Market

Sumith Arangala, Chief Executive Officer, LVL Energy Fund (left) handing over the agreement to Nanda Fernando, Managing Director, Sampath Bank

Sept 13, 2007 (LBO) – Lanka Auto Gas and Fuel Systems (LAUGFS) plans to set up a gas storage terminal in southern Galle at a cost of 12 million dollars, a top official said. Laugfs decided to build their own terminal because the liquid petroleum gas market was growing and also because of difficulties in existing shipping arrangements, managing director Tilak de Silva said.

The company has leased five acres of land from the Southern Development Authority about 1.5 kilometres from Galle harbour and plans to start building soon, he said.

“We’re now talking to overseas contractors and hope to finish building the LGP terminal in two years,” de Silva said.

It had originally wanted to have the terminal in the harbour itself but decided to build outside owing to the difficulties of getting permission for a gas facility inside the port.

The storage terminal will be the island’s second, after the Shell Gas terminal in Kerawalapitiya.

Laugfs Holdings has been expanding and diversifying rapidly in recent years and now has a range of businesses.

Among its latest ventures is a new tyre facility to be set up at a cost of 350 million rupees at its plant in Ho