Business Times

Laugfs interested in Shell's LPG business

By Natasha Gunaratne

Sri Lankan company Laugfs Holdings is in the initial stages of looking into acquiring Shell's liquefied petroleum gas (LPG) business in Sri Lanka with the latter seeking to dispose its LPG operations in Europe and parts of Asia as it reviews ownership options for most of its LPG businesses worldwide.

Laugfs Chairman W.K.H. Wegapitiya told the Business Times this week that as a prudent company, Laugfs is very keen to acquire Shell's LPG business. He said an initial approach through the relevant parties has taken place.

Mr. Wegapitiya also addressed media coverage about monopolies abter Laugf's intention to acquire Shell's LPG business was made public last week. He explained that the normal market situation of supply and demand does not apply to LPG, which is a by-product of refined crude oil, because prices are linked to global crude oil prices. In Sri Lanka, prices are regulated by the Consumer Affairs Authority (CAA) but regardless of whether there is only one company or 10 companies, prices will not vary greatly because they are pegged on global prices. However, having more players could improve the quality of service.

The Ceylon Petroleum Corporation (CPC) may also make a bid for Shell's LPG business. Asked to comment, Minister of Petroleum Industries Susil Premajayantha said its upto the board of directors of the CPC on whether or not CPC should get into this business. Following businessman Harry Jayawardene's recent appointment as CPC Chairman, Mr. Premajayantha said the new board will meet shortly.

Shell said in a statement that it completed the sale of its LPG business in India in April 2010 and has confirmed its intention to sell its major shareholding in the Pakistan LPG business.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
 
Other Business Times Articles
Private pension funds to be regulated by IBSL
Heads roll, Harry J at CPC
'Green, green grass of home' fades away
No limousines but Mercs, Rolls Royce for Indian stars
Mobile interconnecting rate 50 cents by June 1
Sri Lanka’s ‘amante’ uses Indo-Lanka duty cuts to get closer to Indian women
Heads roll but the carnival goes on
Government should take over LP Gas business
The Greek tragedy: Drowning in debt
Mobile Number Portability can hit SLT, Dialog profits –Fitch
Dialog Telekom improves quarterly results
ADB good development partner but bureaucratic and slow
FCCISL leads Lankan delegation for top China trade fair
Some 2665 employees of Expolanka Group observe Earth Hour
Need for independent body to run Ad agency awards
JKH rejects Tax Dept. allegations against SAGT
BOI gearing to unblock state land for investment
Central Bank made a respondent in GK case
Public losing faith in lotteries
Lanka Tiles posts good profit on domestic demand and drop in costs
Rohan Somawansa takes over as new President of Sri Lanka Institute of Marketing
Oil hedging cases dismissed
Brokers can't 'sit pretty' with new transaction costs
‘Waiting’ facility for IIFA guests
Promoting Ceylon Tea as a continuous world class product
Profits ease at Pan Asia Bank
RAM Ratings Lanka upgrades SLIC’s rating
Ethics and HR management to the fore at public forum
CTC net profits rise
Liquid milk strengthens Kotmale results in ’09-10
HSBC Sri Lanka wins regional environment award
DFCC Vardhana Bank 2009 profits increase by 141%
DHL service to Canada from Sri Lanka
Ogilvy awarded ICC World Cup 2011 campaign
tomorrowMEDICINE - personalised and self-aware
Laugfs interested in Shell's LPG business
CSE says new broker licences to be decided soon
Hilton Asia head visits Sri Lanka
SriLankan clears backlog of passengers to Europe
Panadol continues support to Sri Lanka Medical Library
Nations Trust Bank quarterly profits rise
Union Chemicals profits rise
ABS to offer Agile Lab's AXPERT 5th GEAR ERP
New Venture Fund launched in Sri Lanka
Tourist arrivals remain strong
MphasiS' SL entry due to talent pool, price and market size
Virtusa product for Media industry
Haycarb reports record financial year
Rise in oil will affect Chevron’s performance
Dankotuwa reports quarterly net loss
Poverty no bar to becoming brilliant student: ICASL President
Think-tank for Ministry of External Affairs
United Tractors to create energy from garbage

 

 
Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution