New gas terminal for Laugfs

Hathoon Sheriffdeen

The estimated cost of this project will be US $ 10 to 15 million. Laugfs Lanka Gas Limited will meet 50 per cent of this expenditure while the balance is expected from local banks, Ranasinghe said.

"With the installation of the new gas tanks in Galle, we will be able to save a considerable amount which will be spent for transport. Various other constraints such as wastage and delaying of the ships could also be eliminated, he said.

Sri Lanka has a total capacity of 10,000 metric tonnes gas stored for a month, which is much less than the total gas demand for a month.

With the new installation the entire requirement could be stored, Ranasinghe said. He also said that in the same place they are planning to establish another cylinder filling plant to cater to the total demand of the Southern Province. The output will be 5,000 cylinders per day.

This project will also initially generate a minimum 100 direct permanent employment opportunities. Apart from that there will be contractual employments and indirect employment opportunities, he said.

"Environmental issues are involved and we are in the process of clearing them before commencing construction work. Since gas storage is a sensitive issue we have to obtain foreign expertise in its installation,' Ranasinghe said.