Explaining, he said that in the gas business, there was not a single company, which was capable of providing all the solutions ‘from well to the flame’. Hence, it involves many internationally reputed experts in this endeavour.“It was one of the dreams of Laugfs Gas to introduce LNG to Sri Lanka and to be a part of it. Liquefied Natural Gas (LNG) is an ideal energy source for a country like Sri Lanka, which is convenient, environment friendly and cost effective,†he added.Wegapitiya pointed out that importing LNG needs the establishment of heavy infrastructure such as setting up of an LNG Import terminal, which he said will cost at least a minimum of US$ 400 to US$ 500 million.
He said, to justify a significant investment of that nature, it was necessary to have a captive market for LNG, which would at least need a base load consumption of 400 megawatts. With the completion of the facility it would ease a large foreign exchange burden and also reduce environmental pollution. Power generation will have to keep pace with the new thrust on tourism and the commencement of mega infrastructure projects. However, he stressed that setting up a terminal would take years.
LNG is primarily used for industrial and commercial purposes. In the meantime, Laugfs Holdings will construct a liquid petroleum gas (LPG) import terminal with an investment of US$ 20 million at the Hambantota Port. The import facility will be constructed as a BoI Project and is expected to complete construction by the end of this year and expects the facility would be ready for operations by next year.“By setting up the new terminal with a capacity of 20,000 metric tonnes, we hope to enhance supply efficiency of Laugfs gas throughout the country and increase our market share,†he said.
The demand for LPG has increased over the years and importing in small quantities is not sufficient.“We have planned to increase our current market share of 35% through stiff competition,†he said.Laugfs Gas increased sales volumes and value in the current financial year compared to the previous year despite many challenges faced by the company, which operates in a duopoly market with the only competitor — Litro being a government entity, Wegapitiya said.Wegapitiya said that the firm aimed to import and have a bigger stock holding ability to cater to the increasing demand.
“The completion of the facility will ensure continuous supply and discharge of gas irrespective of bad weather conditions and freight expenses.The completion of the new facility it would have a minimum exposure to the international volatility and with the improved cost efficiency it would significantly benefit the end users. Sri Lanka has sufficient LPG infrastructure in place to handle the future demand for LPG and the company will continue to promote this exceptional energy.Wegapitiya said that with the economy poised at a high growth rate of over seven per cent and with the per capita income increased, the company’s goals seemed achievable. During this financial year, energy, leisure and the retail sectors were the major contributors to the growth of the company.
Further he said that if the sector was growing at around 10% then a company should at least have a growth of over 20% – 25%; otherwise, it was pointless to be in this competitive industry. The company maintained its dominant role as the market leader in the commercial, industrial and auto gas sectors through enhanced and superior customer relationship management and committed technical service teams.“Sri Lanka is now being looked upon as an investment hotspot, and we should capitalize on this and do this soon. The change is vital for us, and if we do not go for the change now it will never be,†Wegapitiya noted.
