Laugfs keen to buy Shell stake

Laugfs Gas is keen to buy the 49 percent stake in Shell Gas Lanka Ltd., (SGLL) and make it a more profitable venture, said Chairman, Laugfs Holdings Limited, W.K.H. Wegapitiya.

He said Laugfs appreciates the move by the government to buy Shell which had been a national asset given to a multi-national company.

The Cabinet approved the purchasing of shares in Shell Gas Lanka Ltd. and Shell Terminal Lanka Ltd.,(STLL).

Approval was given to buy the 51 percent stake in Shell for US$ 63 million on Thursday.

Wegapitiya said Laugfs had already expressed willingness to buy Shell when it decided to sell its stake. Common procuring of Liquid Petroleum Gas to negotiate better rates and enhance operating efficiency will help pass down the benefits to end-users.

"Promoting private-public partnerships and creating a vibrant energy sector in the country is vital.

The government has taken the right move to boost the economy", he said.

Chairman/Managing Director, SGLL, Walter Sanchez said Shell and the government of Sri Lanka are discussing the sale of Shell's shares in SGLL and STLL to the government.

"We are hopeful an agreement would will be signed soon", Sanchez said. -(LF)