Financial Times

4th LPG supplier launches in Dec
A Sri Lanka-Malaysia joint venture in the gas sector is preparing a soft launch next month, raising the number of companies in the domestic and industrial gas market to four.

Officials said Expogas Lanka Ltd, part of the Expolanka Group is planning to manufacture its own cylinders filled with imported liquid petroleum gas (LPG). It has signed a joint venture with a Malaysian company - Global Gas Alliance - under a BOI-approved project. Part of the first consigment of LPG has already arrived in Sri Lanka.

Initially the joint venture plans to start selling cylinders filled with 2 1/2 kg LPG to the domestic market. K.M Munavver, Director, Expogas said that only 20 percent of the Sri Lankan demand for LPG is now served by the other gas suppliers.

He said they plan to penetrate the balance 80 percent of the market by selling gas at attractive, competitive prices. The price of the product is yet to be fixed.
More LPG consignments are due soon.

The company will in the interim period concentrate on markets in Colombo and Gampaha districts by releasing around 25,000 to 30,000 kgs and then spread to other areas once the product is established in these two regions.

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