LAUGFS Gas would account to 6% of total export revenue of Sri Lanka by 2020 from their LPG gas export operations from Hambantota terminal said its Chairman, W. K. H. Wegapitiya.
The LPG storage terminals by LAUGFS Terminals Ltd., is being built with an investment of USD 80 million and will be one of the largest LPG import and export terminals in South Asia and would open next April.
“We need 17 more ships for to transport LPG and would acquire them within the next 8 months.”
Strategically located at the Hambantota Port, the LAUGFS LPG Terminal will operate as a central hub for LPG importing, re-exporting as well as the provisioning to retailers.
“Once completed, the LAUGFS terminals in Hambantota will garner tremendous economic benefits to our country by helping to position Sri Lanka as a central energy hub in the region.”
“Therefore, this financing facility’s significance will extend to a national and regional level as it has 80% of re-exports. ”
Constructed by China Huanqiu Contracting & Engineering Corporation (HQC), the first phase of the LAUGFS LPG Terminal will be of 30,000MT storage capacity, with plans to extend to 45,000MT in phase two.
Once completed, the facility will consist of above-ground spherical LPG storage tanks, proposed cargo heating system at the existing jetty and well-equipped to accept VLGCs with refrigerated or pressurized cargo. LAUGFS Gas PLC and Standard Chartered also announced the first ever private sector financing facility in Sri Lanka supported by China Export & Credit Insurance Corporation (SINOSURE) for this project. As a principal party to this transaction, Standard Chartered acted as the coordinating bank, sole facility arranger and lender for the financing facility.
Jim McCabe, Chief Executive Officer, Standard Chartered Sri Lanka, commenting on the transaction said, that this is a landmark occasion for Standard Chartered, as the first international bank to sign a strategic cooperation agreement with SINOSURE.”
“This transaction is a result of the excellent working relationship we have developed over the years with SINOSURE and LAUGFS, supported by our longstanding presence in both China and Sri Lanka.”
“The LAUGFS LPG Terminal project will become a catalyst that contributes to the future economic prosperity of Sri Lanka.”
“The strategic location of the terminal in the midst of the world’s largest shipping routes will undoubtedly be an enormous advantage that the company can leverage on,” commented SINOSURE Deputy General Manager, Guo Yilin.
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