20 September, 2021

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Controversial Shell Gas Clinches Deal: Agreement Likely Next Week

The agreement with Shell Gas company on the annual gas supply to the country is likely to be signed next week, authoritative sources told Colombo Telegraph.

The representatives of the company has already held several rounds of discussion with the Sri Lankan authorities over the agreement.

Finance Minister Ravi Karunanayake

Finance Minister Ravi Karunanayake

When contacted by Colombo Telegraph, a high profile official involved in the process said the Sri Lankan government is holding discussions with nearly five companies over the annual gas supply. “Shell is not the only stakeholder, ” he said.

However, reliable sources said Shell Gas Company, which pulled out of Sri Lanka’s market a few years ago, has already clinched the deal.

There are serious doubts whether the proper tender procedure was followed when awarding the tender to Shell Gas company.

Although some officials have suggested to postpone the signing of the agreement, certain stakeholders, including the Finance Ministry which come under Ravi Karunanayake, are exerting pressure on authorities to sign the agreement before August 17.

Shell had to pull out of Sri Lanka after the government bought back Royal Dutch Shell’s stake in the part privatized gas company, Shell Gas Lanka. Shell’s decision to sell followed long running quarrels with the Government over the price at which the company could sell gas in the country. The $63 million sale returns the LP gas business in Sri Lanka to 100% state ownership.

Former President Mahinda Rajapaksa’s government had been at loggerheads with the oil and gas giant over the price at which gas is sold: the government insisted gas be sold at less than international market prices.

Following the development, Litro gas was formed by the Sri Lankan government with Sri Lanka Insurance being its majority shareholder. Litro gas is presently the biggest player in the Lankan gas industry.

Related posts;

Shell Gas Comeback Bid To Jeopardize State Run Litro Gas: Tender Procedure “Circumvented”?

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Latest comments

  • 22
    3

    Ravi K and Corruption seem to go hand-in-hand.

    He is the opposite of King Midas, everything Ravi K touches turns to garbage.

    • 14
      3

      Ravi K is leading the charge to sink Good Governance. Even before it is born.

      Cheers!

    • 0
      0

      Are you suggesting that Shell Gas produces palm greese too ?

  • 9
    4

    UNP is all about Good Economics … Right

    Litro sells Cooking Gas to Dalits below the Market Price, because of Mahinda ..

    So the Insurance Company Shareholder must be loosing money.

    Yahapalanya appointed Bangsa who apparently is Galleon Ravi’s BIL is now in charge of the Insurance Corp doesn’t like it .because he wants to keep it tight and make the Corporation profitable.

    Fair enough.

    But what puzzles me is this same Galleon Ravi was bragging about reducing the price of Gas by LKR 100…

    Is Shell going to give Galleon and Batalanda Gas for nothing?.

    Or is it subsidized by the Tax Payers in London to help Cameron make life easy for our Dalits at least until Batalanada Ranil scores?….

    Because SHELL shareholders aren’t philanthropists…

  • 23
    0

    Ravi,
    Please don’t screw this-up. You seem to bring controversy in everything you do. Frankly, you are a shady guy. We want the UNP to win but you do things to damage its chances.

    • 3
      7

      He didn’t get involved in this deal, This article by CT is misleading, Ravi already denied recently that they didn’t sign an agreement with Shell Gas.

      Ravi in fact, said that they have reduced the price of gas to benefit the people for whose who are suffering hardships caused by the previous regime.

      I even have friends who work for Litro Gas company they also denied that there was no agreement with Shell Gas took place soon after MR henchmen Bandula bought up this allegation against Ravi and his ministerial secretary.

      You may recall previous articles that were published by CT stating that he aided the Tamil trading insider who was arrested in New York. Even the court proved he don’t have direct involvement in the case of that Tamil guy who got arrested for insider trading in the USA.

      • 9
        0

        Dom,

        I have nothing personal against Ravi, but he does not practice what he preaches. He needs to reform a lot if he wants to remain in politics.

      • 1
        0

        Denied they didn’t sign it? Very confusing way of writing up, as it is a double negative, a double denial, it can mean anything.

  • 8
    1

    WHAT ARE YOUR SOURCES

    This news isnt even heard within the company so im wondering how you think this is going to happen?
    Please CT stop posting rumours. next time youll be saying Exxon is buying CPC

    if you are going to post such stuff please disclose the name of the writer because otherwise this is just a rumour like gossip news.

    Kindly refrain from posting things like this because the employees of LITRO
    dont even know about this.

    ALSO SHELL IS OUT OF THE LPG business, they sold most of their global holdings why would they even enter sri lanka again?

    another thing in the past regieme everything was supplied by one company OMAN TRADING COMPANY. kindly let me know how come you posted nothing on that? or are you just trying to tarnish the image of the Minister above Ravi Karunanayake

  • 8
    1

    I wish to repeat that Ranil will, ably supported by Ravi grab defeat from the jaws of victory come August 17!

  • 2
    5

    This article is misleading to mudslinging at UNP, Ravi say, that none of sort of partnership with Shell gas took place.

    Even my friends who work at Litro Gas company they’re holding leading positions told me that they have not even in touch with Shell Gas company in regarding the partnership.

    CT shouldn’t mislead people this allegation first was bought up by Bandula claiming that Ravi signed the agreement with Shell gas yet the officers of Litro Gas denied the reports suggesting that. I don’t understand why CT has turned as an opponent to UNP…

    • 8
      1

      CT does not have to mudsling at Ravi, he is quite good at throwing mud at himself with his deals.

  • 2
    1

    Can the consumer affairs authority or any relevant establishment please analyze and check the quality of the present LPG gas in the domestic cylinder? Dealers say the price reduction was possible because there is more air mixed with gas now.

  • 9
    2

    CT is right. Fact is UNP high profile tie coat gentleman crooks who dabble in mega deals don’t like free media to expose their crooked deals. They only want wrongs of their opponents to be exposed. Ravi and Ranil are an embarrassment to president Sirisena as seen with the CB bond scam. They think they can fool the president. I hope Sirisena is aware of their dealings and tell them where to get off.

  • 2
    0

    Some body please run to the supreme court and stop this madness.

  • 3
    1

    I believe that all of us are under duty to respect the people’s right to know the correct information on this deal.

    I can disclose with certainty that there was no proper tender process followed in this case and tenders were opened without the presence of the tenderers after closing the tender for the supply of 150,000 metric tons of LPG for the year commencing 1st June 2015.

    have been instructed to institute legal proceedings against LITRO GAS in dubious DEAL with no transparency in the tender process.

    Tender document clearly speaks of transparency, business integrity and anti-corruption. However, none of these have been adhered to in this so called deal.

    We have already served notice on LITRO GAS Gas about the impending legal action.

  • 0
    0

    [Edited out]

  • 1
    0

    Ravi is a [Edited out]. Unfortunately he is a UNPer too. He should be more comfortable in Mahinda Rajapaksa’s UPFA than in the UNP. Our last resort to get rid of this man is by rejecting in the next election.

  • 0
    0

    i feel that president must intervene in this matter and cancell all illegal and irregular deals that have taken place after 08/01/2015
    since ifthe president can appoint RW as PM with hisdecision why cannot he act in cancelling such deals which lack transparency.

  • 0
    0

    So long it done at fair value and there is no hidden agendas written into it and allow it to be interpreted in their favour, as is the case of many agreements.

  • 0
    0

    Ranil, Maithripala and Yahapalanaya can go a long way together if they immediately ditch what have become their liabilities Ravi K and Mahendran.

    The country thinks bad of these guys regardless what they have done or not done. They are not by any means indispensable.

    Let them go, please.

  • 0
    0

    Not is the time to chase out the politician crooks. As we all know Ravi Karunanaya is one of the biggest crooks in Sri Lanka and he is only second to Basil and Namal Rajapaksa.

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