Litro Gas Lanka Ltd is about to award the latest one year term tender of 280,000 MT of LP gas to Oman Company, OQ Trading in accordance with the endorsement of the Standing Cabinet appointed Procurement Committee.
OQ Trading has been selected on the recommendation of the technical evaluation committee, Litro Gas official sources said.
Siam Gas Trading Pte Ltd the only bidder vied for the tender became unsuccessful for the second time this year on the grounds that it has failed to submit the Expression of Interest (EOI’s) from the vessel owners’ indicating their willingness to release the vessel for this assignment under given time period.
Litro Gas Lanka Ltd has called this 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 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 this Oman company OQ Trading.
Siam Gas has made an appeal to the Procurement Appeal Board at the Presidential Secretariat in Colombo urging it to open their bid for consideration as they were rejected unreasonably without opening their bids.
In their appeal they have brought to the notice of the committee that in the Oil and Gas Transportation, the intended Suppliers procure the required Vessels through accepted and reputable Ship Brokers and does not deal directly with the Ship Owners, until such time Time-Charter Agreements are signed, for such nominated vessels, upon being the successful supplier.
‘This practice is in place for our movement of over 2 Million Metric Tons of LP Gas annually, supplied by Siam Gas to customers worldwide’ the company added.
Siam Gas Trading Pte Ltd submitted the Expression of Interest, as requested by Litro Gas Lanka Ltd, through its Ship Broker which has not been considered by the Technical Evaluation Committee.
Although 13 (Thirteen) potential Bidders expressed their interest to bid for the above supply by purchasing the Tender documents on the payment of non-refundable tender fee of Rs. 100000, only Siam Gas and OQ Trading submitted responsive bids at the closing time of Offers.
The company also claimed that the requirement of Vessel Owners’ Willingness Clause, which was not in any of the previous Tender documents of Litro Gas Lanka Ltd, was specifically included into this Tender document, to give an undue and distinct advantage to OQ Trading only, over the other bidders, as OQ Trading who are the present Suppliers to Litro Gas Lanka have their Time-Charter Agreements in place with their present vessel owners, which they can submit with the Tender.
The company also informed the committee that they also have been made aware by Litro Gas Lanka that a further order has been assured to OQ Trading for the supply of 50,000 Metric Tons of LP Gas up to December 2022, when their Vessels Time-Charter Agreement would be extended further.
