As a part of US$ 20 million financing by China Export and Credit Insurance Corporation (Sinosure) for the 30,000 Metric Tonnes (MT) Import and Export Terminal at Hambantota, LAUGFS Terminals Limited is mulling some options to fund the rest of this mega-project, according to top officials.
The company on its own put down $24 million on this $80 million project and also has a banking facility of $20 million “We may go for a joint venture or a loan for the balance $16 million,” the official noted.
The Import and Export Terminal will be commissioned in April 2018, also expected to be a significant revenue generator for the group as well as contribute to the GDP of the country.
LAUGFS Gas is planning the groundwork to enter the Myanmar market soon with their Liquefied Petroleum Gas (LPG) and lubricants.
The operation in Myanmar is being considered as a Greenfield, whereas LAUGFS Gas Bangladesh Ltd aims to expand their operations there with LPG cylinders.
Earlier, Laugfs Gas Bangladesh on July said it plans to strengthen its presence in Bangladesh with renewed commitment and further investments.
The firm disclosed its plans at a corporate dinner reception hosted by the company in Dhaka, Bangladesh which was graced by President Maithripala Sirisena.
“As an energy conglomerate with a strong footprint in the region, we plan to invest significantly in Bangladesh over the next three years to enhance capacity, expand storage and set up a cylinder manufacturing plant,” said Laugfs Holdings Chairman WKH Wegapitiya in a statement.
Laugfs Gas entered Bangladesh in 2015 with the acquisition of Petredec Elpiji Ltd and is now one of the largest liquefied petroleum gas distributors in the country.
The company imports and distributes over 50,000 tonnes of LPG every year and operates an expansive and fast-growing distribution network across Bangladesh.
It currently operates a world-class LPG import, bottling and distribution facility in Mongla Port.
It serves domestic and industrial segments with its 12kg cylinders for households and 12kg and 45kg cylinders for commercial and industrial customers under the brand name LAUGFS Gas.
It also pioneered the introduction of Autogas in Bangladesh and supplies LPG to automobile service stations across the country.
Its presence in the Power and Energy sector includes Liquid Petroleum Gas, energy logistics, and infrastructure, petroleum retailing, as well as renewable energy.
It has a strong presence in LPG downstream and midstream activities within the region.
It also has LAUGFS Terminals, which is currently setting up one of the largest LPG import and export terminals in South Asia.