Cabinet nod to purchase US$ 3.8mn worth new cylinders for Litro

• Contract goes to two Thai firms

The Cabinet of Ministers has given its nod to State-run Litro Gas Lanka Limited to purchase US$ 3.76 million worth of new empty metal cylinder containers for liquid petroleum gas (LPG) from two Thailand-based companies for the year 2020.

The Cabinet Office said the contract was awarded subject to the recommendation of the Standing Procurement Committee by the Cabinet of Ministers.

Accordingly, Metal Mate Co Ltd. has been awarded a contract to supply 22, 000, 105, 056 and 1, 260 cylinders respectively, under the categories of 2.3 kilograms, 12.5 kilograms and 37.5 kilograms for US$ 2.18 million.

The supply of 117, 040 cylinders under the category of 5 kilograms for US$ 1.58 million has been awarded to Sahamitr Pressure Containers Public Co. Ltd.

Litro Gas has 76 percent share of Sri Lanka’s LPG market while privately-owned Laugfs Gas accounts for the balance.

With an expanding LPG market, Sri Lanka needs approximately 700, 000 new cylinders per annum.