Hambantota Port to Get New LPG Terminal

Sri Lanka's Hambantota port will soon expand its operations with a new LPG terminal to be built by Laugfs Gas' subsidiary Laugfs Terminals, and China Huanqiu Contracting and Construction Corporation (HQC).

The companies signed an agreement on November 17 to invest over USD 80 million in what is to be South Asia's largest import and export liquefied petroleum gas (LPG) terminal.

Laugfs plans to invest USD 58.1 million in the first phase of the construction with a capacity of 30,000 MT within the next two years. In the second phase, the company expects to increase its capacity up to 45,000 MTs, which will allow very large gas carriers (VLGCs) to be accommodated.

"Laugfs terminal will service vessels from small pressurized vessels to very large gas carriers," laugfs Group Managing Director Thilak De Silva said.

"We have plans to enhance the capacity with an additional 15,000 MT of LPG which will boost the handling capacity yield easily to over 100,000 MT and beyond."

Apart from the already acquired two ships, the company plans to buy ten additonal ships to offer a more effective turnaround at its new LPG termial and cater to a growing regional demand.