Sri Lanka LPG supply is set to stabilise as the country prepares to receive its first liquefied petroleum gas shipment from Swiss-based Geogas Trading on January 05, following the signing of a new international supply agreement.
Sri Lanka LPG supply assured as first Geogas shipment arrives January 05
Sri Lanka’s energy sector is poised for a critical boost as the country prepares to receive its first liquefied petroleum gas (LPG) shipment from Swiss-based Geogas Trading early next month, reinforcing assurances that domestic gas supplies will remain uninterrupted in the coming year.
Foreign Minister Vijitha Herath confirmed in Parliament that the inaugural Geogas LPG vessel is scheduled to arrive on January 05, marking the beginning of a new supply arrangement aimed at strengthening Sri Lanka LPG supply security. Addressing concerns raised by lawmakers, the minister emphasised that all necessary agreements have already been finalised and that the supplier has committed to meeting Sri Lanka’s regulatory and quality standards.
“There will be no shortage of LPG,” Minister Herath told Parliament, underlining that the transition to a new supplier has been carefully planned. He added that the agreements governing the supply contract had been formally signed, ensuring continuity in the distribution of cooking gas across the country.
Geogas Trading secured the contract after winning an international competitive tender to supply LPG to state-run Litro Gas Lanka Limited. Under the terms of the agreement, the company will provide approximately 380,000 metric tonnes of LPG during 2026, with a permitted variation of plus or minus 20 percent. The volume is expected to adequately meet national demand while allowing flexibility to respond to fluctuations in consumption.
According to Minister Herath, Geogas emerged as the successful bidder by offering a price that was 15 US cents lower than the next closest competitor, highlighting the cost efficiency achieved through the tender process. The competitive pricing is expected to ease financial pressure on the state energy sector while supporting price stability for consumers.
The announcement follows concerns expressed in Parliament by Sri Lanka Podujana Party member Chamara Sampath Dissanayake, who warned of a potential gas shortage in 2026. He pointed out that OQ Gas, an Oman-based company that had previously supplied LPG to Litro Gas, had lost the contract, raising fears that the shift in suppliers could disrupt availability.
Responding to these concerns, Minister Herath dismissed claims of an impending shortage, reiterating that the transition had been managed in line with procurement guidelines and national energy policies. “The agreements have been signed. They have agreed to comply with our standards. There is no problem,” he said, adding that the first shipment’s confirmed arrival date demonstrates the supplier’s readiness to deliver.
Geogas Trading SA sources its LPG primarily from the United States, according to industry sources. This diversification of supply origins is seen as a strategic move to enhance Sri Lanka LPG supply resilience amid ongoing volatility in global energy markets. By reducing reliance on a limited pool of suppliers, authorities aim to minimise the risk of disruptions caused by geopolitical tensions, logistical bottlenecks, or price shocks.
Energy analysts note that securing long-term LPG contracts through transparent international tenders is crucial for Sri Lanka, particularly as household cooking gas remains an essential commodity for millions of families. Any disruption in supply has historically led to social and economic pressure, making supply continuity a politically and economically sensitive issue.
The government’s insistence that Geogas complies fully with local safety and quality standards is also significant. Sri Lanka has faced public scrutiny over gas safety in recent years, prompting tighter regulations and oversight. Officials maintain that supplier compliance was a key criterion in awarding the contract, alongside pricing and delivery capability.
With the first shipment due in early January, Litro Gas is expected to begin integrating Geogas supplies into its distribution network shortly thereafter. Authorities say this will ensure a smooth transition from the previous supplier, avoiding gaps in availability at the consumer level.
As Sri Lanka continues to stabilise its energy sector, the confirmed arrival of the Geogas LPG shipment represents a tangible step toward restoring confidence in essential fuel supplies. The government maintains that the new contract not only secures volumes for the future but also reinforces transparency and competitiveness in state procurement processes.
For consumers, the immediate takeaway is reassurance. Despite concerns voiced in political debate, officials insist that Sri Lanka LPG supply will remain steady, with the January 05 shipment serving as the first visible milestone in a longer-term supply strategy.