LAUGFS gets approval to distribute LPG

• LAUGFS Holdings Chief says issuances of cylinders slowed from 25,000 to 5,000 due to new directives
• Says they do not have sufficient stocks, but will release all available 
• Alleges LPG shortage due to foreign exchange crisis 

By Charumini de Silva 

LAUGFS Gas has commenced issuing Liquefied Petroleum Gas (LPG) cylinders to the market, following the Technology Ministry Secretary approving an imported consignment yesterday.

The approval was given after several inspections of samples as well as comparisons with the standards set by Sri Lanka Standards Institute (SLSI) and Consumer Affairs Authority (CAA).

“We have started to issue LPG cylinders to the market from today (23) afternoon,” LAUGFS Holdings Chairman W.K.H. Wegapitiya told the Daily FT yesterday.

Although the firm had issued around 25,000 cylinders per day earlier, he said with the new directives they were currently issuing about 5,000 cylinders.

“We have to adhere to the new guidelines. In this context, we have to display the composition of content on cylinders and seal it with different colour codes. 

As these are new additions to our usual production line procedures, it has slowed down a little. However, we have taken all measures to increase efficiency and distribute LPG cylinders to the market as soon as possible,” Wegapitiya added.

In terms of the standards he said that there was ‘no specific’ composition when it came to LPG content, but they too adopted industry norms and standards which were accepted globally.

The President-appointed Expert Committee on Tuesday revealed that the change in the composition of the LPG was the key reason which triggered a spate of gas-related fires and explosions countrywide. The committee outlined specific recommendations to the SLSI, Industrial Technology Institute of Sri Lanka (ITI), Public Utilities Commission of Sri Lanka (PUCSL), Consumer Affairs Authority (CAA), Litro Gas Ltd., and several other organisations to implement this relation.

As per the report, from 1 January to 19 December, a total of 847 LPG-related fires and explosions were recorded. This includes 797 in relation to Litro Gas, and 50 linked to LAUGFS Gas.

When asked if they had sufficient LPG stocks to distribute amidst a shortage in the market, he said they had 30,000 tons currently at the LAUGFS terminal in Hambantota. 

“I can’t say we have sufficient stocks, when we need 55,000 tons per month. But whatever that is available, we will issue to the market,” he said, adding that the dire status of foreign exchange in the economy had led to the LPG shortage.

“To import 55,000 tons of LPG will require around $ 40 million per month. The banks are refusing to issue the foreign exchange,” Wegapitiya pointed out.

A ship carrying 250,000 tons of gas arrived in the country early this week.