Sri Lankan W.K.H. Wegapitiya founded LAUGFS group that has emerged to be a regional player will commission LAUGFS Gas PLC owned LAUGFS Terminals Ltd – the group’s LPG Transshipment Terminal at Hambantota port and will receive its first commercial cargo from December 15, 2018 the company had announced according to S&P Global Platts.

S&P Global Platts further said that the new LAUGFS terminal will be among the growing list of companies building LPG terminals in Asia. LAUGFS Gas Chairman W.K.H. Wegapitiya had told S&P Global Platts that discussions are ongoing between the company and suppliers for LPG term supply contracts.

"Fruitful discussions are also ongoing with prospective partners," for usage of the terminal, he had said adding that Sri Lanka needs around 480,000 mt a year of LPG.

The report said that the US $ 80 million LPG import and export terminal on the southern tip of Sri Lanka will support LAUGFS Gas' rapid expansion plan in the region, towards making it an integrated regional LPG player in the Indian Ocean Rim. Accordingly, the first phase of the project was completed with a 30,000 mt (Metric Tonne) storage terminal and it can receive and store refrigerated propane and butane separately or in mixed form, via very large gas carriers and pressurized vessels. Further plans are underway for capacity to be extended to 45,000 mt with the completion of the second phase project of 15,000 mt, making the new LAUGFS LPG Terminal a hub for LPG importing, re-exporting and supply to retailers.

The terminal caters to LAUGFS Gas' demand in Sri Lanka and Bangladesh as well as serves as a regional LPG hub for many Asian LPG firms, according to the company. LAUGFS has also invested in improving their LPG-related infrastructure in Bangladesh, where it is expanding its existing storage terminal at Mongla port.

LAUGFS' presence in the sector ranges from LPG downstream activities in Sri Lanka and Bangladesh by LAUGFS Gas, to LPG ocean freight services and related logistics with its own LPG fleet by LAUGFS Maritime Services Ltd., while energy trading is handled by Dubai-based SLOGAL Energy DMCC. The report also pointed out that Asia's growing LPG market and increased global supply sources have prompted several companies to build LPG terminals in recent years.