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Hambantota International Port records High Growth in LPG operations in second quarter 2024

HIP supplying a direct bunker to McDermott Derrick Barge No.50 at HIP Oil Jetty

The Hambantota International Port’s (HIP) second quarter report on LPG operations records an increase of approximately 100% in volumes handled compared to 2023 numbers. Bunker volumes at the port have also increased considerably by almost 128%.

Building on this success, HIP has expanded its services to accommodate diverse oil and gas operations, including LPG vessel gas-ups and direct bunker supplies, clearly demonstrating the port’s capacity to handle a variety of energy-related operations.

“2024 is a year of significant achievements for our Energy Services, and we are strongly reinforcing the port’s position as a strategic energy hub in the regional and global maritime landscape, under the China Merchants Group (CMG) and Sri Lanka Ports Authority (SLPA). In the first six months alone, we achieved a 91% increase in LPG volumes compared to last year. Our overall LPG throughput at the end of June 2024 reached 149,980 metric tons, compared to 78,724 metric tons last year. This increase, driven by robust demand from both imports and transshipment sectors, underscores the port’s strategic importance in the regional energy landscape,” says Li Yongzhuang General Manager, Energy Services Department of Hambantota International Port Group (HIPG), adding that this milestone is particularly significant for LAUGFS Gas. “It indicates HIP’s growing role in the global energy supply chain, which our clientele and partners can leverage.”

The rise in operational volumes is not limited to LPG, as bunker services surged with a 128% increase. The volume reached 66,044 metric tons within the first five months of 2024, compared to 28,923 metric tons handled during the same period last year. This growth encompasses bunker supplies within the port, at anchorage, and in outside port limit (OPL) areas, highlighting HIP’s strategic and technological advantages, coupled with growing capability and efficiency in handling complex maritime services.

“We are actively promoting the energy sector as a growth market for HIP and expect these figures to continue rising. We are confident of meeting our target annual oil and gas volumes by the end of this year,” says Johnson Liu, Chief Representative of China Merchants Group (CMG) in Sri Lanka and CEO of Hambantota International Port Group (HIPG). “Through strong partnerships with local and international stakeholders in the oil and gas industry, we are transforming the dynamics of the oil and gas space in the Indian Ocean while adhering to the highest levels of health, safety, and efficiency.”

The port recently completed several LPG gas-ups and direct bunker supply activities, including a direct supply to the McDermott Derrick Barge No. 50 at the HIP Oil Jetty. Looking ahead, the port is ready to begin Liquid Bulk Ship-to-Ship Operations (STS), further affirming its status as an ‘Energy Hub’ in the region.

The expansion of operational capabilities at HIP, facilitating a diverse range of maritime activities beyond traditional loading and unloading, is a strategic enhancement crucial for the maritime industry. This consolidation of essential operations within a single port streamlines processes for global shipping companies, solidifying HIP’s strategic importance.

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