SUNGAS

Barakat Company Ltd. has joined forces with three other major Afghan companies for the establishment of a nationwide LPG storage and retail distribution network in Afganistan - to be known as Sungas Ltd.

The entire project has stemmed from the belief that LPG is the only practical and feasible substitute for trees and animal dung as a primary fuel source in Afghanistan and increased LPG consumption will directly improve both the Afghan environment and Afghan people's living conditions.

Sungas Ltd. has already invested 12 million US Dollars in this project. Furthermore, negotiations are being carried out to increase the invested capital up to 20 million USD by acquiring a medium term loan from international financing institutions.

The annual sales capacity of this network in the two cities will be 40.000 metric tons. The project will expand to cover all cities of Afghanistan in the near future.

SUNGAS is committed to bringing the highest technology and highest international safety standards to Afghanistan's emerging LPG market. SUNGAS intends to work closely with all relevant Afghanistan government agencies and the World LPG Association in order to develop and enforce appropriate safety standards for LPG transportation and distribution.

Our investment project will set the standards in the market and we shall help the state institutions to establish the standards to govern the market and the effective enforcement of safety standards will not only increase consumers' confidence in LPG as an energy source, but also force out of the market the irresponsible dealers and distributors relying on unsafe and obsolete equipment.

The Sungas project has already contributed much the social, environmental and economical development of Afghanistan.

Nothing is more basic in life than opportunities to enjoy hot food, take a warm bath and study in a heated school. LPG consumption brings these real and tangible benefits to the daily live of average Afghan citizens.

LPG consumption also has a significant impact on infant mortality rates in rural areas. Where LPG is not available, wood charcoal and animal dunk are the primary sources of heating and cooking fuel. Smoke from wood and dung fires are significant contributors to infant respiratory infections and infant mortality. Clean burning LPG, however, saves lives.

One of the many tragedies of Afghanistan's civil war has been the almost complete denuding of the countryside. This has resulted in an environmental disaster that threatens the very viability of Afghanistan's agricultural base. Reversing the desertification of Afghanistan's once thriving agricultural lands is an overriding priority for all. However, the only way to establish a sustainable reforestation program is to remove the populations' need to hack down every living tree in order to stay warm and cook.

LPG is the only available, viable and affordable alternative to wood as a fuel source. Thus, investment in LPG infrastructure is also a necessary condition to investment in wide scale reforestation programs.

Two LPG storage facilities ( covering 25,000 square meters each and with 1035 cubic meters storage capacities each ), one on the border of Uzbekistan ( Hairetan ) and the other on the border with Turkmenistan ( Turghundy ) and necessary administrative facilities have already been built and the storage tanks and the LPG equipment have been installed.

21 SUNGAS oil tankers provide quality transportation of its products to its local customers who have refilling facilities.

Modern LPG cylinder refilling plant has been constructed in Kabul by Sungas Ltd. Aim of this investment is to supply LPG cylinders for household and industrial use with competitive pricing and with compliance to international standards. Refilling of cylinders and quality control of the cylinders are implemented using internationally certified equipment and methods. The total refilling capacity is 200 tons per day.

The facility refills cylinders of 2kg, 6kg, 12kg, 24kgand 45kg. With its two automotive, weight sensitive and leak detecting carousels 2kg, 6kg and 12kg are refilled automatically. 24kg and 45kg are refilled and detected manually.

The distribution system will be completed with continuous purchase of retail LPG cylinders ( LPG bottles ) with 2 kg , 6 kg , 12 kg , 24 kg , 45 kg capacities. All equipment are in accordance with highest valid international quality standards.