This is adding to a growing list of companies building LPG terminals in Asia.
“Fruitful discussions are also ongoing with prospective partners,” for usage of the terminal, he added. Sri Lanka needs around 480,000 mt/year of LPG, he said.
The $80 million LPG import and export terminal on the southern tip of Sri Lanka will support LAUGFS Gas’ rapid expansion plan in the region, towards making it an integrated regional LPG player in the Indian Ocean Rim, it said.
The first phase of the project was completed with a 30,000 mt storage terminal. It can receive and store refrigerated propane and butane separately or in mixed form, via very large gas carriers and pressurized vessels.
Plans are underway for capacity to be extended to 45,000 mt with the completion of the second phase project of 15,000 mt, making the new LAUGFS LPG Terminal a hub for LPG importing, re-exporting and supply to retailers, it said.
The terminal caters to LAUGFS Gas’ demand in Sri Lanka and Bangladesh as well as serves as a regional LPG hub for many Asian LPG firms, the company said.
LAUGFS has also invested in improving their LPG-related infrastructure in Bangladesh, where it is expanding its existing storage terminal at Mongla port.
LAUGFS’ presence in the sector ranges from LPG downstream activities in Sri Lanka and Bangladesh by LAUGFS Gas, to LPG ocean freight services and related logistics with its own LPG fleet by LAUGFS Maritime Services Ltd., while energy trading is handled by Dubai-based SLOGAL Energy DMCC.
Asia’s growing LPG market and increased global supply sources have prompted several companies to build LPG terminals in recent years.