Business News: LAUGFS Gas PLC fully owned subsidiary, LAUGFS Terminals Ltd., celebrated the 100th ship call yesterday, for loading of LP Gas at its port based, all weather LP Gas Storage and Transhipment Terminal Complex, located at the Hambantota International Port.
The installed cargo capacity of this Terminal Complex is 30,000 metric tons, which can be turned around three times monthly to achieve 1,000,000 metric tons of LP Gas per annum as transshipments, by way of import, storage, mixing of elements of Propane and Butane and exports to identified markets.
This complex has been granted Board of Investment (BOI) approval with special ‘hub-status’ as per the relevant gazette notifications and enjoys a range of statutory concessions.
The commercial operations of this facility commenced in July 2019, and it is considered as an impressive performance to record the 100th ship call within a space of only 14 months, which is exceptional for infrastructure projects of this nature having long gestation periods.
The calling of the 100th ship at the terminal complex through Hambantota International Port is a landmark event in the country since it denotes the beginning of creating an ‘Energy–Hub’ around the port in addition to it being a ‘Maritime-Hub’ in the short to medium-term with increased ship calls for trading and transhipment purposes.
The achievement of the call of 100 ships is all the more important in the light of the adverse effect from oil-price volatility, USA China trade disputes, drone attacks on Saudi Aramco installations and Covid-19 impacts with almost complete lockdowns globally leading to economic recessions creating a substantial decline in energy demand and trading.
LAUGFS Terminals Ltd with its 100 ships calling at the terminal complex had handled in total 413,000 metric tons of LPG of inward and outward cargo. The value of the transactions of inward and outward cargo of these 100 ships is around USD 175,000,000.
Its exports to foreign markets include Bangladesh, Maldives and India and it is now reaching 60% of exports of the total volumes handled monthly which is once again considered as a noteworthy feature to highlight.
“Our major export mix consist of apparels, tourism, plantation produce and few more sectors but it is quite interesting to observe a gradual emergence of a completely new sector the ‘energy exports” adding value through LAUGFS Transhipment Terminals. This will hopefully be a major export sector in the country in the time to come.
At the moment, the terminal records an average of 15 – 20 ship calls per month and it will soon be increased up to 30 ship calls per month and it will be a situation of at least one ship will either be loading or unloading of LPG cargo at the terminals per day,” the statement added.
In terms of shipping and maritime activities, the fleet of LPG vessels owned by LAUGFS Maritime Services (Pvt) Ltd is fully utilized for LPG cargo transportation from the terminals.
“We congratulate LAUGFS Terminals on their robust business plans and operation which will contribute greatly to the energy hub status of Hambantota International Port (HIP),” Hambantota International Port Group (Pvt) Ltd. CEO Ray Ren said.
“HIP which now positions itself on quality services and standards in all aspects of port operations will continue to support LAUGFS Terminals in achieving their targets with high quality operational and health & safety standards for the discharge and loading of LPG,” he added.