Shell Gas Lanka said the proposed sale of Lanka’s operations is an attractive opportunity for the Government to acquire the professional liquid petroleum gas (LPG) business in the country.
The Cabinet approved the purchase of stakes in Shell Gas Lanka Limited (SGLL) and Shell Terminal Lanka Limited (STLL) yesterday. Shell Gas Lanka’s Country Chairman and Managing Director Walter Sanchez said the company and the Sri Lankan Government are in discussions for the sale of Shell’s shares in SGLL and STLL.
“We are hopeful a sale purchase agreement will be signed soon. However, the agreement has yet to be signed and our discussions with the Government remain confidential at present. The sale of Shell’s shares in Sri Lanka is in line with Shell’s strategy to refocus its global downstream footprint into fewer, larger markets,” he said.
Sanchez said Shell believes the proposed sale is an attractive opportunity for the Government to acquire a cost-efficient and professional LPG business covering the entire scope of activities: from supply, storage and filling to distribution and marketing of LPG.
Shell branded lubricants remain unaffected by the proposed portfolio changes in the LPG business and will continue to be available in Sri Lanka via a distributor.
“Until a deal is concluded, Shell Gas Lanka’s operations will continue as usual. We wish to state that running a safe, cost-effective and reliable operation remains our top priority,” he said.
The Government intends to retain at least 51 percent of these shares to keep the controlling interest and issue the balance to the public, enhancing investment opportunities to the private sector, the Information Department website said.
Speaking to the Daily News Business Shell Gas Distributors Association Secretary, Sathyendra Wijayapura said the Government announcement regarding Cabinet approval to purchase 51 percent in SGLL and 100 percent in STLL is a good move.
“It is important that the Government will continue the model of operation to ensure availability and safety,” he said.
He said there will be no problem to the employees of the distribution network if the Government continues in the same model.
The Sri Lanka Ceramic Council (SLCC) said industrialists are optimistic about the decision.
The ceramic industry is one of the bulk users of the LPG gas in the country.
source - www.dailynews.lk
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