Press Release : Litro Gas Lanka’s Explanation of False Information on Electronic and Social Media regarding the Shipping Tariff for International Purchase of Gas 280,000MT for the Year 2022-2023.
1. LP Gas Shipping Tariff Tender for the relevant year had been called under International Competitive Prices (ICB) 2022/01/19 and the call for bids 2022/03/16 has been completed by Litro Gas Lanka.
2. Litro would like to inform you that the following suppliers had submitted bids for the same.
• Siam Gas Trading Shipping fee per metric ton of gas US $ 96 ($ 96 per Mt)
• O Q Trading Shipping fee per metric ton of gas US $ 129 ($ 129 per Mt)
• BB Energy (Asia) ltd shipping per per metric ton of gas US $ 148 ($ 148 per Mt)
3. The Ministry Procurement Committee (SCAPC) nominated Siam Trading as the Supplier for the relevant year.
4. However, the Sri Lankan Government was unable to provide the US $ 30 million letter of credit ($ 30M -SBLC) owed by Litro Gas Lanka to Siam Gas under the agreement.
5. As it took time to resolve the situation and the gas stocks in Sri Lanka had been reduced to only a few days worth of stock by that point, the purchase price of Spot Cargo as a short term solution was obtained from Siam Gas Company and the previous supplier and second bidder. Bids were also received from OQ.
6. In a letter dated 30/05/2020, Siam Gas stated that in the current economic climate, they can supply only 6,600 metric tons of gas at $112 for shipping, which is sufficient for only 5 days worth of supply, while daily requirement is currently high. Litro Gas Lanka says that would not have met the demand.
7. OQ Trading, the second lowest bidder in the above bid, had notified that it can meet Sri Lanka’s four-month gas requirement of 100,000 metric for $129.
8. In view of the above, the Cabinet of Ministers requested the Government of Sri Lanka to enter into an agreement with OQ Trading Company for a temporary supply on 2022/06/08 to end the current gas shortage and queues. Litro Gas Lanka had announced that it had terminated the contract with Siam Gas to launch a new tender in order to reach a possible agreement.
courtesy newswire
