24 September, 2020

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

Shell Gas, the largest player in the Sri Lanka’s gas industry at one point, is set to return to the country’s market by edging out Litro Gas, the state run gas company.

Finance Minister Ravi Karunanayake

Finance Minister Ravi Karunanayake

A delegation from Shell is scheduled to hold discussions with Lankan authorities on Monday over the comeback bid, Colombo Telegraph is now in a position to reveal.

However, it learnt that Shell has got the green light to re-enter into Lankan market without a proper tender procedure. This year, 34 companies had sent tender applications to be Sri Lanka’s gas supplier. However, Shell has managed to circumvent the tender process and has now become the front-runner for the bid.

Shell had close connections with Finance Minister Ravi Karunanayake and former President Chandrika Kumaratunga.

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.

Shell’s comeback bid is likely to jeopardize the operations of the state-run Litro Gas, industry sources told Colomb Telegraph on Saturday.

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Latest comments

  • 12
    4

    Let’s all hope that fair competition prevails with the consumer being the ultimate winner. Shell had a monopoly during its previous run. Hopefully folks at the negotiation table representing the SL govt. looks after the interest of the citizens and not theirs or politicians pockets. Based on the history this could just be another dream of Citizen Perera.

    • 4
      0

      Was Shell’s previous run also under a previous UNP administration ?

    • 8
      1

      There will be no Yahapalanaya or fair play with UNP crooks & and wheeler dealer s who obtain commissions on behalf of Ranil so he looks clean . Other wise why was all road & building contracts renegotiated by RK,Paski& Malik when the line ministries had no clue until the contractors informed them that they will start work once again.These fellows can teach some UPFA crooks a thing or two

  • 14
    0

    has it always got to be a case of U scratch my back I scratch urs? Shell gas squeezed the life out of customers… let them be away… local companies can benefit along with the citizenry…..

  • 16
    2

    Ravi, Ranil and Mahendran are all set to screw us over and deprive us of Economic and social rights in their about turn from China’s embrace to the US..!
    Between Devil and Deep blue sea, there seems to be no balance?!

    Hope MY3 Sirisena will wake from slumber start campaigning for ECONOMIC JUSTICE AN RIGHTS and get rid of Mahendran and start investigation of Mahinda Jarapassa’s economic hit man – Nivard Cabraal and the theft of EPF funds..

    The neo-liberal, neo-con Economic hit men juggernaut is in place under Ranil..
    and the Sri Lanka masses are between the devil and deep blue sea! Economic and social rights vs. Civil and Political. Why cannot they get it ALL balanced and right?

    We need a new Central Bank Governor. Dr. Dushni Weerakoon or Dr. Saman Kelegama from IPS would be able to set about cleaning up the CB.

  • 14
    0

    Privatizing state owned public assets is not the solution to the Debt crisis exacerbated by Mahendran’s scams at the Central bank, although this is what IMF advocates even after the Greek crisis..

    If Shell wants to return to Lanka, it should start a company that competes with LITRO. Shell taking over Litro is anti-trust and will cause a monopoly and it will be the local consumer that is screwed.

  • 11
    0

    A leopard is never known to change its spots!! What?!

  • 13
    0

    It appears that Ranil’s government is in a hurry to complete as many deals as possible that would enable Western interests to creep back into Sri Lanka before the August 17 elections.

    These multi-national companies know that Ranil’s days are numbered and want to cash in before the American stooges are out of power.

    Ravi Karunanayake seems to be closer to all these multi-national companies. Is he having a hand in letting in Shell outside the tender procedures? Ravi Karunayakake escaped from a serious corruption case on technical grounds thanks to the AG’s department muddling in drafting the plaint.

  • 8
    0

    This is a clear violation is tender procedure. Mind you this being an international tender they can’t hand pick a supplier who has quoted in excess of $125 to suddenly come down to $ 105.75 what caused this sudden change in the supplier? Why didn’t they quote 105.75 in the first place? What’s the deal that was struck in the 23rd hour? What about the other suppliers who quoted much lower in the tender? This is also a clear case of insider trading as in the case of Central Bank. Will these guys ever learn????

  • 7
    0

    Old habits die hard, better habits (of the current kind) die harder. So , let the usual horse deals and scum bag deals done in the in the pig sty, begin.The dirty bond deal of the central bank has set the style of things to come and we will very well see an epidemic of crime of all forms, and cheap cover up excuses been made.

  • 11
    1

    Former lady president was [Edited out] This is a fact and former CEO told me this .

    And now she is running on good governance and foolish president says she is not corrupt. I thought president is a good man and now all I can see is a coward and man with no backbone to run a country.
    This is how foolish SL people are. UNP is about selling state assets for a song for their cronies. If Mahinda come to power, this time all gloves are off and wait and see what happened to UNP clowns.

  • 9
    1

    When you appoint a Jackal in charge of the foul cage, this is what happens.
    This is how Ranil maintain his MR> CLEAN image. Get other Royalist politicians to rob for him and he remains mr. clean.
    Jaya wewa…. More driven out of employment and Litro closed even before the 17th

    UNP’ers need to be going before all GODS to Kovils, temples, churches, mosques and devales to prevent MR and the UPFA winning the elections with a comfortable majority.

  • 3
    0

    Why not re-establish the former ‘Colombo Gas & Water Co.” owned and operated by the GOSL? Place it under a Board comprising of five reliable persons.

  • 5
    0

    Why not re-establish the former ‘Colombo Gas & Water Co.” owned and operated by the GOSL? Place it under a Board comprising of five reliable persons. This company can sell the LPG to all who bring the cylinder. What the company will need are storage tanks, distribution tankers, filling equipment. They will not need to invest in cylinders as the cylinders used by Lithro, Laughs, and the(new) Shell can be serviced by merely changing the filler-head. By doing so, you open the market to real competition and the customers will buy from the cheapest source. This will leave no room for corruption.

  • 3
    1

    According to Gas distributors and dealers the recent Rs:100/= price reduction was possible due to quality reduction and most consumers complain that the present gas cylinder does not last long as earlier. Probably due to drop in quality. Consumer affairs authority please look into this as somebody may be creating a pathway for privatization of Gas in Sri Lanka.

    • 1
      0

      Underfilling of the cylinder ?

  • 6
    1

    Shell coming back is CBK’s baby.

    All of them are selling the country and screwing up the country make their tummys big.

  • 2
    1

    Be careful CT ! Or someone in power will soon bring some kind of legal action against you citing Parliamentary Privilege or some such !

    And I bet you thought the era of a Free Media had arrived ?

  • 3
    0

    WHO IS going to get the Cuts from offering the tenders????.

    I also want my share from those under deal commissions !!!.

  • 3
    0

    Shell sold out and left from Pakistan and Srilanka on a company policy decision. They wanted to get out of retail business. I think this information is wrong.

  • 1
    0

    Shell sold out left on a company policy decision to get out of retail,business. I think this information is wrong.

  • 1
    0

    Competition will shake the lethargy of government Institutions as well as Shell.

    • 1
      1

      Mr. Ranil Wijesekera, lethargy is not the monopoly of the government institutions. There are Government owned institution that are very efficient.There are hospitals owned by the Government which are more efficient than the private sector hospitals.There are banks that are more efficient than private banks.

      The efficiency of the private sector is a misnomer.What happened to the CWE after it was sold to the private sector.145 state owned institution were sold to the private sector, only about seven are functioning.That reflects the efficiency of the private sector.What happened to the Fixed deposits that were held by the state sector institutions that were sold to the private sector.They were not retained by the Govt when the ownership changed.What happened to that money?

      Efficiency and inefficiency is equally distributed.

      This story about the inefficiency of the state sector is being spread by people who robbed the State Coffers.One such person owes the Govt of SL over 10 billion Rupees.To avoid prosecution he changed from the UNP to SLFP.Today he is silent

  • 1
    1

    It is good to have competition to bring the prices down. State monopoly never worked.It was shown not only herein Sri Lanka but world wide.In Sri Lanka all political appointees were milking the organizations without looking towards making profits.

  • 0
    0

    How the Shell Company is going to enter the market? As a new competitor or by buying the Litro Gas Company.

    • 0
      0

      The easiest way would be to greeze a few palms.

  • 0
    0

    Its look like another election “kunduwa” from UPFA ranks, who does not know what really happens in the rest of the world!

  • 0
    0

    UNP SB Faction leader Karu Jayasuriya’s “Stink Bomb” which was aimed at Uncle Gota has drowned not only Galleon Ravi, but also UNP Muslim Faction Leader Kabir Hussain.

    No one with even grain of brains would think that Gota has friends in Pathlaya after he got rid of most of the A list from Colombo.

    Army Sampath, the UNP Pathalaya member and Galleon’ bosom buddy was taken to a Private Hospital with injuries in the attack.

    But he has escaped and the Police are looking for him,

    No way our Dalits have organized a hit in a strong UNP Turf like Colombo 13, which is protected by the Pathalaya “A” list.

    Now the question the Elite must be asking is how Galleon’s Intelligence network which now has extra recruits with impeccable credentials of the likes of Dr Mervyn and Ms Premachandra missed the word on this hit ?.

    Unless it was an inside job between heavies in the Bloomendhal Underworld .

    In order protect their asses or rather interests, now that the 2 King Pins , whom Galleo mentioned and the White Van are under investigation and in the public domain.

    And the good people in the Police would want to pursue them at least after the death of Yahapalanaya.

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