Litro gets fired up

Thursday, 18 November 2010 01:16 - - {{hitsCtrl.values.hits}}

* Wants CAA to come up with common pricing formula

* To double capacity by 8,000 metric tonnes with the commissioning of stage two of Kerawalapitiya filling plant

* Aims to release 100,000 LPG cylinders to meet market demand

* Treats Laugfs as a “friendly stakeholder”

By Deepal V. Perera

Litro Gas Lanka Limited, the new owner of former Shell Gas Lanka, said yesterday that the company would develop the country’s gas industry and treat its competitor Laugfs as a friendly stakeholder.

“It has been only few days since we have taken over the Shell Gas operations and we are now working to strengthen the company further. One of the first things that we are concentrating on is to request the Consumer Affairs Authority (CAA) to set up one formula for the two gas operators in the country. Currently there are two formulas operating for the two companies and we would like to request one formula,” Chairman of the newly-established Litro Gas Lanka Gamini Senerath told the Daily FT.

Commenting on the company’s new development plans, Senerath said that Litro was looking forward to expand its capacity by launching the stage two development plan of the Kerawalapitiya filling plant.

“We are hoping to launch the stage two development plan of the Kerawalapitiya plant, which had been formulated by Shell Gas. The current capacity of this facility is 8,000 metric tonnes and the stage two would offer another 8,000 metric tonnes. By doing that we will be able to hold a buffer stock, which is crucial for the industry,” he said.

Commenting on how much money the company is going invest in the former Shell Gas-operated venture, Senarath said that it was too early to mention any figures but the new management board was currently engaged in studying the company’s entire operations.

Explaining how the new company is managed without the top team of Shell, he said that there were only two foreigners in the company under Shell Management and rest of the operations were carried out by local professionals and they were still working in the company. Therefore, the entire operations are intact under Litro.

The Chairman also said the company would like to immediately introduce more cylinders to the market and it would need over 100,000 cylinders to meet the current demand.

“We have a 73% market share in the country and there is a big demand for gas. We need at least another 100,000 cylinders to fulfil that and this can reach even more.” he said.

Commenting on its competitor Laugfs Gas Limited, which listed on the Colombo Stock Exchange recently, Chairman of Litro Gas said that company considers Laugfs as a another friendly Sri Lankan company engaged in the same field.

“Litro and Laugfs are two local companies and we would like to treat our competitor as a friendly company which is engaged in the same motive as we are – strengthening the country’s energy sector,” Senerath asserted.

Explaining how the Litro name came to be, he said that it was invented by Ariyasen Ahubudu and endorsed by the President.