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While the prices of fuel and gas are escalating due to the tension in the Gulf region, the third entrant to-be in the local gas market is making final arrangements to supply domestic gas by next month.

The Managing Director of Mundo Gas (Pvt) Ltd., Ariyaseela Wickremanayake told the Daily News yesterday that the installation of the terminal at the Galle harbour would start from today and is expected to be completed by the end of this month.

"The barge is scheduled to arrive today and we have made arrangements to start laying the pipelines as soon as the barge arrives. We have storage facilities at the Galle Harbour and initially we will start with 20,000 cylinders," Wickramanayake said.

Mundogas was planning to lease a seawall with a warehouse facility and open storage space in the Galle Habour but the process delayed as it was unable to empty the stores which had been used by the Sri Lanka Army.

The barge which is 90.56 meters in length, 18.35 width and 6.21 metres deep will have a carrying capacity of 2031 tonnes.

The company hopes to replenish this barge outside the Galle harbour with a warehouse facility in the Galle harbour for refilling purposes.

Wickremanayake did not reveal the price at which the Company was planning to introduce domestic gas to the market. Earlier he had said that the company would be able to sell a gas cylinder at Rs. 325 but due to gas price increases in the world market it is doubtful whether the Company would be able to sell gas at that price.

Mundogas Lanka (Pvt) Limited, a Philippines based company is here as a result of an effort made by Commerce and Consumer Affairs Minister, Ravi Karunanayake to relieve consumers by offering them a wide choice of LPG gas locally.

Early this week Laugfs Lanka Gas Ltd increased the price of a cylinder to Rs. 665. Shell Gas Ltd. which sells gas at Rs.598 is planning to increase prices next week.

"The gas price in the international market has gone up drastically and a price increase is inevitable. But we have not yet decided on the percentage of the increase," a spokesman for the Company said.

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