Sri Lanka is set to import liquefied petroleum gas (LPG) from the United States after Litro Gas Lanka awarded a 12-month supply contract to Swiss-based Geo Gas Trading SA. Approved by the cabinet, the deal secures 380,000 metric tonnes of LPG for 2026, marking a significant step in ensuring stable energy supplies.
Litro Gas awards 12-month contract to Geo Gas Trading for US-sourced LPG
Sri Lanka’s energy sector is moving forward with a major LPG import initiative as Litro Gas Lanka finalizes its contract with Geo Gas Trading SA, a Swiss company sourcing the majority of its products from the United States. The cabinet approved the deal to supply 380,000 metric tonnes, plus or minus 20 percent, following an international competitive bidding process.
Channa Gunawardana, Chairman of Litro Gas, emphasized that this marks the first partnership with Geo Gas Trading. The contract is scheduled to cover LPG deliveries over a full 12 months starting January 2026, helping secure reliable energy for both domestic and industrial consumers.
The tender drew five bidders, with two qualifying after a technical review. Litro Gas’ procurement process has faced scrutiny in the past, including a 2023 National Audit Office report highlighting instances where contracts were not awarded to the lowest bidder. This new agreement reflects a careful balance between competitive bidding and securing dependable LPG supply.
Geo Gas Trading’s selection underscores Sri Lanka’s strategy to diversify energy imports while ensuring market stability. Analysts note that sourcing LPG from the United States may provide more predictable pricing and supply reliability in the face of global energy volatility.