Cabinet approval for CPC to enter LP Gas industry
COLOMBO: Cabinet approval has been granted to a Memorandum submitted
by Petroleum and Petroleum Resources Development Minister A.H.M. Fowzie
to enable the Ceylon Petroleum Corporation (CPC) to enter the Liquid
Petroleum Gas (LPG) and Lubricant business, Information and Media
Minister and Cabinet Spokesman Anura Priyadarshana Yapa said.
Addressing the weekly Cabinet press briefing at the Government
Information Department Auditorium yesterday, Yapa said the country's
present LPG requirement is about 160,000 MT per annum.
Of this total LPG consumption, nearly 75 per cent is for domestic use
and the balance for industrial use.
There is a tendency for an increase in the demand for LPG and
therefore it is appropriate for the CPC to enter into LPG retail
business as a local producer of LPG and also as a means of creating fair
competition in the business, he said.
The Minister pointed out that the Sapugaskanda Refinery produces
about 18,000 MT of LPG per annum which is 10 per cent of the current
After completion of the gas recovery project at the refinery, CPC
will produce 36,000 MT which will be about 20 per cent of the country's
requirement, he said.
The CPC had been in this business for more than three decades since
the inception of the Corporation.
The CPC Lubricants Unit was sold to Caltex Ltd by previous regime,
the Minister said.
The CPC has called for Expression of Interest from qualified
companies for a joint venture to re-enter the lubricant market under the
brand name `Ceypetco'.
The normal procedure will be followed in granting a licence to engage
in lubricant business, he said.