Sri Lanka has turned to the United States for domestic gas supplies instead of relying on the Middle East, with one shipment currently stored at anchorage in Maldivian waters due to insufficient storage capacity in the country, an official said.
In Sri Lanka, the domestic Liquefied Petroleum Gas (LPG) market is dominated by two major retailers, Litro Gas Lanka Limited and LAUGFS Gas PLC.
Litro Gas Chairman Channa Gunawardana told media that the decision to import from the United States was made to avoid potential disruptions caused by tensions in the Middle East. He added that shipments are arriving regularly despite storage limitations.
“We do not have enough storage facilities in Kerawalapitiya. A gas shipment of 22,000 tonnes is currently anchored in the Maldives, and another 33,000-tonne shipment is on its way,” he said.
Gunawardana noted that importing from the United States does not offer a significant price advantage. “While U.S. prices may be slightly lower, freight costs are high due to the distance. Still, we opted for U.S. imports considering the current circumstances,” he explained.
Regarding ongoing shortages in some areas, he said Litro has been covering the market share previously held by LAUGFS. “We have ensured supply in major towns and cities, but some interior areas still face shortages due to increased demand from LAUGFS’ absence,” he said.
Under normal conditions, Litro is responsible for supplying 33,000 tonnes of gas monthly, while LAUGFS handles the remaining 5,000 tonnes.
