News
US sanctions on Iran LPG trade flags Laugfs unit Slogal as ‘key player’
View(s):By Kapila Bandara
A multi-billion rupee energy trader, owned by Colombo-Stock-Exchange-listed Laugfs Gas and registered in a tax-free zone in Dubai, felt the force of the Trump Administration’s multi-front campaign to choke off Iran’s revenue sources when the company was sanctioned this week as a key player involved in multiple shipments to countries including Yemen.
Slogal Energy DMCC, the fully-owned international energy trading arm of Laugfs Gas, was named in bold type in a statement by the powerful United States Treasury through its Office of Foreign Assets Control, which regulates sanctions, for trading in Iranian liquefied petroleum gas (LPG). Slogal Energy is noted in several transactions.
DMCC refers to Dubai Multi Commodities Centre, a free zone.
Lloyd’s List describes the sanctions as the “heaviest crackdown yet on Iran’s liquefied petroleum gas fleet’’.
Any material impact on Slogal Energy is yet to be seen.
In the domestic cooking gas business, Laugfs Gas has flagged substantial margin compression, greater pressure on working capital, and difficulties in managing cash flows and meeting financial commitments.
The US Treasury said that in late 2024, Iran-based petrochemical broker Persian Gulf Petrochemical Industry Commercial Co (PGPICC), and United Arab Emirates-based Markan White Trading Crude Oil Abroad Co. LLC., “used Slogal to help facilitate the sale, shipment, and export of millions of dollars’ worth of Iranian LPG to Sri Lanka’’. PGPICC was sanctioned in 2019.
Markan White and Slogal Energy DMCC “play a key role in enabling the sale and shipment of Iranian LPG to Sri Lanka’’.
The US Treasury said that in late 2024, PGPICC and Markan White used Slogal to help facilitate the sale, shipment, and export of millions of dollars’ worth of Iranian LPG to Sri Lanka. In 2024 and 2025, Slogal purchased Iranian LPG that was delivered to Sri Lanka, with multiple shipments of Iranian LPG reaching end users in Sri Lanka and Bangladesh.
In 2024, Palau-flagged MAX STAR delivered Iranian LPG bought by Slogal. This year, Slogal bought Iranian LPG that was delivered by Panama-flagged GAS DIOR to Sri Lanka. Early this year, GAS DIOR delivered over 17,000 metric tons of Iranian LPG to Bangladesh, making an additional LPG delivery for now-sanctioned supplier Octane Energy FZCO, the US Treasury said.
In late 2024, Markan White coordinated with PGPICC and Slogal to facilitate the sale of millions of dollars’ worth of LPG to be delivered to end users in Sri Lanka and Yemen via SEA OPERA.
Sri Lanka’s Employee Provident Fund is the second largest shareholder of Laugfs Gas with a 17.283% interest in voting. shares.
Businessman Dhammika Perera now holds 50% of Laugfs Holdings, parent of Laugfs Gas, following a transaction through Vallibel Three (Pvt) Limited early last month. Director Tilak de Silva who held 39.58% ordinary shares of Laugfs Holdings exited after transferring his stake to Vallibel Three.
Slogal Energy is among 50 plus individuals, entities, and vessels “that facilitate Iranian oil and LPG sales and shipments from Iran. Chinese refineries are among those dealt a financial blow.
Fourteen LPG carriers, including 11 very large gas carriers, and 16 oil tankers are swept up in sanctions. Some had operated through Panama shell companies.
In July and August as well the Trump Administration imposed sanctions against Iran crude oil exporters, sending a warning of further punishments targeting players in Iran’s petroleum and petrochemical sector.
In April, the US Treasury sanctioned Iranian LPG magnate Seyed Asadoollah Emamjomeh, his son, and companies, including Caspian Petrochemical FZE in the United Arab Emirates.
Dubai Multi Commodities Centre, is a business district for trade in commodities and high-value services. Records for 2023 show 2,692 new companies registered in the tax free (on qualifying income) zone.
A search of the DMCC registry shows that Slogal Energy was issued with a licence 17 December, 2015 and the expiry is 16 December this year. Its activities from Unit No: 1707, Jumeirah Bay Tower X3, include trading in petrochemicals and crude oil as well as refined oil products.
License manager is cited as Sudath Hemantha Jayawardhana.
In the financial year 2024/25 filings to CSE, Laugfs Gas reports that Slogal Energy “specialises in the procurement and trading of LPG’’.
Laugfs Gas posted a loss of Rs 1.013b for the year ending 31 March 2025, compared with Rs 463.6m income the year before. Revenue was Rs 23.720b. Group loss was Rs 2.52b.
The Group has Rs 31.874b interest bearing loans and borrowings. This represents 68% of the Group’s total liabilities. Repayment plans for debts of Rs 2.389b have been re-negotiated/restructured with lenders, the company reports.
Accumulated losses of the Group and the Company are Rs.5.403 billion and Rs.1.668b, respectively. The Group’s and Company’s current liabilities exceed current assets byvRs 17.455b and Rs. 9.248b, respectively, filings show.
Laugfs Gas says Slogal Energy “delivered significant year-on-year growth, benefitting from increased regional demand and deeper penetration into neighbouring markets…’’
Energy trading was the second-largest contributor to group
revenue, and is described as “the clear standout performer for the current year’’. The segment “experienced exponential growth, with revenue from external customers surging more than threefold
from Rs 6.234b in financial year 2023/24 to Rs 19.989b, fuelled by increased demand’’ in Bangladesh and Maldives.
Slogal Energy has leveraged its strategic location in Dubai and “rolled out a supplier diversification strategy aimed at broadening its sourcing base to enable access to more competitive pricing,’’ Laugfs Gas says in annual filings.
Trading profit was Rs 77m on revenue of Rs. 38.177b.
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