US$25m gas terminal for Hambantota

Shirajiv SIRIMANE in Hambantota

Laugfs Holding is to put up a gas terminal in Hambantota exploiting the facilities from the proposed Hambantota Harbour.

Ranjith Gunasekera.

Chairman Southern Development Authority, Ranjith Gunasekera said that the company has already earmarked a suitable land for the project and signage has been already put up. The company hopes to invest around US$25 million for this project.

He said that the main objective of this project is to provide gas at a subsidised rate to the customers. Laugfs hopes to connect an underground pipe from the Hambantota Harbour to the land which is located in close proximity.

He said that the company pays high demerage charges at the Colombo Port and it also takes a longer time to unload due to the congestion in the Colombo Port.

“What the company is planning to do is to unload Gas in Hambantota and then refill cylinders and give it to customers especially in the South at a lower rate,” he said.

Laugfs Holding would then use the road network to service the Eastern province too.

He said that due to this, for the first time in Sri Lanka, Laugfs gas prices would be cheaper in the Southern province than in Colombo. He said that in addition, construction work on the proposed canned tin fish factory with a New Zealand investor would commence next month in Galle. “This would be a USM$ 50 million venture with 90 percent fish to be exported to the Europe, Gulf and New Zealand,” he announced.

The investor would also use his own vessels for deep water fishing and a percentage of fish would also be purchased from local fishermen. Over 1500 direct and indirect employment opportunities would be created.