Sri Lanka has turned to the United States for domestic gas purchases instead of depending on the Middle East for supplies, and a shipment that has already been imported is currently stored at anchorage in the Maldives waters due to the lack of sufficient storage facilities in the country, an official said.
In Sri Lanka, the domestic Liquefied Petroleum Gas (LPG) market is dominated by two main retailers- Litro Gas Lanka Limited and LAUGFS Gas PLC.
Litro Gas Chairman Channa Gunawardana told Daily Mirror that he decided to depend on the United States for supplies under the current circumstances to avoid potential disruption linked to tension, and shipments keep coming at the moment.
“We do not have sufficient storage facilities in Kerawalapitiya. A gas shipment of 22,000 tonnes is stored at anchorage in the Maldives. Besides, another shipment of 33,000 tonnes is awaited,” he said.
However, he said that there is no major price advantage over the decision to make gas imports from the United States.
“Prices may be a little less in the United States. Yet, freight charges are high because of the distance. Then, there is no big competitive advantage as a result. But, we still decided to import from the United States since we anticipated the current circumstances,” he said.
Asked why gas distribution has not normalized yet with people complaining about shortages in certain areas, he said Litro had been compelled to fill the market share previously held by LAUGFS.
“In major towns and cities, we have ensured supply. However, there are still shortages in in distribution outlets in interior areas. We have to cater to the demand increase caused by the absence of supplies from LAUGFS,” he said.
Normally, Litro is responsible for the supply of 33,000 tonnes of gas and the other 5000 tonnes a month.