Laugfs Gas PLC and Standard Chartered launched one of the first private sector financing facilities in Sri Lanka, on Friday, supported by China Export and Credit Insurance Corporation (SINOSURE) for the 30,000 MT Laugfs Import and Export Terminal at Hambantota.
As a principal party to this transaction, Standard Chartered acted as the coordinating bank, sole arranger and lender for the financing facility.
The LPG storage terminals by Laugfs Terminals Ltd., a subsidiary of Laugfs Gas PLC, is being built with an investment of USD 80 million and will be one of the largest LPG import and export terminals in South Asia. Laugfs Holdings Chairman W.K.H.Wegapitiya said, “Once completed, the storage terminals in Hambantota will garner tremendous economic benefits to our country by helping to position Sri Lanka as a central energy hub in the region.”
Laugfs LPG Terminal will operate as a central hub for LPG importing, re-exporting as well as provisioning to retailers. Chief Executive Officer, Standard Chartered Sri Lanka, Jim McCabe said, “This is a landmark occasion for Standard Chartered, as the first international bank to sign a strategic cooperation agreement with SINOSURE.”
“This transaction is a result of the excellent working relationship we have developed over the years with SINOSURE and Laugfs, supported by our longstanding presence in China and Sri Lanka,” he said.
SINOSURE Deputy General Manager, Guo Yilin said, “The strategic location of the terminal in the midst of the world’s largest shipping routes will undoubtedly be an enormous advantage that the company can leverage on.”
Constructed by China Huanqiu Contracting & Engineering Corporation (HQC), the first phase of the Laugfs LPG Terminal will be of 30,000MT storage capacity, with plans to extend to 45,000MT in phase two.