Shell Gas, the biggest player in the Sri Lanka’s gas market at one particular point, is set to return to the country’s market by edging out Litro Gas, the state run gas firm.
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 place with out a appropriate tender process. This year, 34 firms had sent tender applications to be Sri Lanka’s gas supplier. Nonetheless, Shell has managed to circumvent the tender method and has now turn out to be the front-runner for the bid.
Shell had close connections with Finance Minister Ravi Karunanayake and former President Chandrika Bandaranaike Kumaratunga.
Shell had to pull out of Sri Lanka soon after the government purchased back Royal Dutch Shell’s stake in the part privatized gas firm, Shell Gas Lanka. Shell’s decision to sell followed long operating quarrels with the Government more than the price at which the business could sell gas in the country. The $ 63 million sale returns the LP gas enterprise in Sri Lanka to one hundred% state ownership.
Former President Mahinda Rajapaksa’s government had been at loggerheads with the oil and gas giant over the price tag at which gas is sold: the government insisted gas be sold at significantly less than international market rates.
Following the improvement, Litro gas was formed by the Sri Lankan government with Sri Lanka Insurance coverage becoming its majority shareholder. Litro gas is presently the largest player in the Lankan gas business.
Shell’s comeback bid is likely to jeopardize the operations of the state-run Litro Gas, market sources told Colomb Telegraph on Saturday.