South Asia - No LPG to shell

Published: Saturday 15 December 2007

Sri Lanka's Supreme Court has issued an injunction preventing the government-owned Ceylon Petroleum Corporation from selling liquefied petroleum gas (LPG) to the multinational corporation Shell. The ruling is in response to a petition filed by Laugfs Gas Pvt Ltd--a domestic oil company. Laugfs argued that if the corporation-produced LPG is sold to Shell, a monopoly will be created in the country.

The court also ordered the minister of petroleum resources and the chairman of the Ceylon Petroleum Corporation Ashantha de Mel to extend the agreement with Laugfs Gas to supply it with LPG. The agreement with Laugfs Gas is to expire on January 20, 2008.

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