Litro issues fresh tender to normalise LPG supply

Litro Gas Lanka Ltd has called a fresh LP Gas tender for the year 2023 tentatively commencing from November 2022 from eligible and qualified bidders to meet the demand of domestic consumers.

The latest tender is for 280,000 metric tonnes (MT) and bidders should submit their bids on or before August 15, 2022 to the Chairman of the Standing Cabinet appointed Procurement Committee, Litro Gas Lanka Ltd, according to the bid document.

Sri Lanka’s LP Gas shortage is set to handle effectively with the procurement of 280,000 MT of LP gas along with the arrival of over 70,000 MT of gas consignments within the next four months, Finance Ministry sources divulged.

The new one year term tender of 280,000 MT of LP gas has been floated following the cancellation of the previous tender of the same quantity of LP Gas awarded to Siam Gas at US$96 per metric ton and opting to buy 100,000 MT of gas at a cost of $ 129 per metric ton from an Oman company OQ Trading.

A top official of the Finance Ministry, a stakeholder of Litro Gas Company, noted that a stock of over 30,000 MT of liquefied petroleum gas has already been received by the company from the 100,000 MT of the gas contract given to OQ Trading Company recently.

Litro Gas Lanka has taken every necessary action to provide LP gas filled cylinders to consumers via its network consisting of 42 distributors, approximately 14,000 point-ofsale locations and 1,500 home delivery hubs, a company official said.

He said the supply will continue despite inclement weather conditions, adding that the shortage has been eliminated to a greater extent.

Litro has received over 10,000 MT of LP Gas in three shipments in July and a largesized tanker carrying 25,000 MT of gas is scheduled to reach the Colombo Port soon.

This will be the final consignment out of the 33,000 MT of LP gas ordered for the month of July in accordance with the tender to procure 100,000 MT of LP gas for the next four months.

The plan is to have the large vessel pump gas into much smaller vessels and ship them to Sri Lanka, he added noting that the initial payments for the vessels that departed Oman have already been made.

In addition, he said that with the arrival of these shipments, it will be possible to issue a sufficient number of domestic gas cylinders to meet the gas requirements of the country.