Gas Supply

Mar 12, 2010 (LBO) – The Sri Lanka Ports Authority is in talks with suppliers of liquid petroleum gas to introduce a third player in the local market once a storage terminal is built in a new port, an official said. SLPA chairman Priyath Wickrama said the LPG storage terminal would come up in the new port of Hambantota now under construction on the south coast for which foreign investors are being invited.

“We hope to introduce another LPG supplier,” he told a news conference.

“There are now two players in the market. The government has got three requests and we’re already in talks with a couple of players.”

Royal Dutch Shell and Laugfs and the two local suppliers at present.

Wickrama said a formal request for proposals, inviting investors for a free trade zone in the new port, is expected to be issued by April. The RFP has been delayed by months.

The SLPA was already holding talks with foreign investors keen to invest in the new port complex which would be a ‘free port’ with no taxes charged.

“Twenty-four foreign investors have already asked for land near the Hambantota port,” Wickrama said.

The port was attractive given its location just off the main East-West trade route and w