Power Gas Lanka; third player in local market
Power Gas Lanka (Pvt) Limited with an Australian joint venture
company will invest US $ five million to enter the local market as the
third player in the Sri Lanka’s LP (liquid Petroleum) gas industry.
New Power Gas cylinder displayed at the launch yesterday.
Picture by Sumanachandra Ariyawansa.
Power Gas Lanka (Pvt) Limited, Chairman/ CEO, Joseph Fernando told a
media conference they will price a 12.5 Kg domestic gas cylinder Rs 100
less than the lowest player in the market. “The company is expecting a
demand for Power Gas with this concessionary pricing despite the current
price escalations in the market,” he said.
“The Company will initially focus on the Western Province and will
gradually expand to other regions in the country especially in
plantation and industrial sectors through bulk supplies. The company is
importing LP Gas mainly from Malaysia and other countries which could
provide at a competitive price to Sri Lanka”, he said.
He said customers would be able to buy the initial total gas package
for around Rs 4,500 which is far below than other offers. “This
initiative will definitely cater to the growing demand in the gas market
quite effectively,” Fernando said.
The main Gas filling centre of the company is in Warakapola. “Due to
problems regarding transportation and administrative concerns, it will
shortly set up its filling center with the storage capacity of 3,000
metric tons at Uswetakeiyawa, Wattala, which is a sub urban area,”
Initially, they will run with a storage capacity of 150 tonnes mainly
focusing on main towns in the Western Province.
“We will be the lowest priced gas supplier to the market, as the over
heads and other expenditure is minimal due to the small staff of 25
people,” he said.
“The Company will start with 20,000 cylinders. We also accept
cylinders from non-existing companies like Mundo Gas and E Gas to assist
them,” Fernando added.
The Company is planning to appoint dealers and distributors island
wide to take the product to customers’ doorstep providing a better
Fernando noted that out of Sri Lanka’s total population of 20 million
only 2.5 million cylinders are used in the domestic market. “These
cylinders are owned by two players in the market, therefore this market
has the potential to grow in the business,” he said.
“This being a 100 per cent Sri Lankan company which uses a soft
approach to ensure the smooth infrastructure, our strategy is set to
provide LP gas at low price,” he said.
Fernando was involved in the Auto Gas business, the conversion of
petrol vehicle to Gas since 1995. With all expertise in the field of Gas
market, Power Gas Lanka signed a MoU with a Malaysian counterpart
recently to bring down gas to the country.