Si Lanka's Laugfs Gas buys Petredec of Bangladesh
Oct 12, 2015 13:41 PM GMT+0530 | 1 Comment(s)
ECONOMYNEXT - Sri Lanka -based Laufgs group said it had bought control of Petredec Elpiji Ltd of Bangladesh, a liquefied petroleum gas distributor, for 18.75 million US dollars.
Laugfs Gas said it bought 69 percent of PEL in its first overseas venture.
"We see tremendous potential for expanding LPG as a domestic and commercial energy source in Bangladesh," Laugfs group chairman W K H Wegapitiya said in a statement.
"The gap between supply and demand in terms of commercial energy needs is also increasing with their natural gas reserves now depleting at a fast pace."
He said the firm was looking at more overseas opportunities.
PEL has a 21 percent and has a 22,000 metric tonnes a year, LPG import facility in Mongla Port in Bangladesh. The market was growing at an annual rate of 12 percent, Laugfs said.
Petredec Elpiji had entered LP Gas distribution in 1997 and had been later acquired by Kleenheat Australia.
Laugfs has just completed the acquisition of a second LPG carrier and said the Bangladeshi operation would increase economies of scale and diversify markets.
Laugfs is Sri Lanka's second LPG distributor. (Colombo/Oct12/2015)