CPC to enter LPG business as third player

• Govt. says CPC has capacity to serve 5-10% demand of LPG

The Cabinet of Ministers this week cleared the path for the state-run Ceylon Petroleum Corporation (CPC) to enter the liquefied petroleum gas  (LPG) distribution operations, as the third market player.

The Cabinet of Ministers on Tuesday approved a proposal by Energy Minister Udaya Gammanpila  to  establish a new LPG distribution entity as a  subsidiary of CPC to enable it to commence LPG distribution operations, utilising the by-products from its Sapugaskanda refinery.

Cabinet Co-Spokesperson and Plantation Minister Dr. Ramesh Pathirana said CPC has the capacity to meet 5-10 percent of the country’s LPG demand.  “CPC produces about 70 to 90 metric tonnes of LPG a day. This is about 5-10 percent of the country’s demand,” he added. 

In addition, CPC also plans to set up a new refinery, with a capacity of 10,000 barrels per day, as a public-private partnership (PPP) project, likely boosting its LPG production capacity. 

The Government Information Department noted that plans are being drawn up to expedite the implementation of these development projects.

Currently, state-owned Litro Gas and privately owned Laugfs Gas are the two players in the country’s 
LPG market.