The construction of the LAUGFS LPG import and export terminal in Hambantota has been halted with immediate effect following an order from the government, Asian Mirror reliably learns.
Built with an investment of $ 80 million, the LAUGFS terminal is set to be one of the largest LPG import and export terminals in its class in South Asia.
It was scheduled to be completed by April, 2018 and the company sources said the construction was 80 percent completed at the time the order came.
As a result, the opening of the terminal has been postponed indefinitely, they also added. This has raised many an eyebrow as it sends out a strong negative message to local investors.
The order had come following the agreement signed between the Sri Lanka Ports Authority and the Chinese partner over the development of the Hambantota port. It was learnt that a dispute over the terminal construction agreement had been the main reason for the government's order.
The terminal was initially designed to tap into the energy requirements of some of the largest emerging LPG markets, including India, Bangladesh and Myanmar.
