Supply of Liquid Petroleum Gas (LPG)

Overview

Hampshire County Council’s Energy Team currently manages utility services, including water, electricity, gas and liquid fuels, across a diverse property portfolio. This includes the corporate estate, schools and colleges, nursing care homes, children’s centres, libraries and museums. The Supplier will supply sites with Liquefied Petroleum Gas (LPG) fuel to heat their buildings and for the use of catering equipment and hot water systems. The current portfolio comprises more than 40 sites, consuming approximately 400,000 litres of bulk LPG annually, in addition to around 30 LPG cylinders per year. The existing supply arrangement is with Calor Gas through the ESPO Framework 92_21 (Liquefied Petroleum Gas and Other Liquid Fuels), with current annual expenditure in the region of £150,000 to £200,000. Continuity of supply is essential to maintaining safe and operational buildings, including facilities that support the delivery of statutory services. Any interruption to LPG supply could adversely affect service delivery, building occupancy and business continuity across the estate. It is anticipated that the new call-off contract will have an estimated annual value of approximately £250,000. This increase reflects rising energy costs and incorporates additional budget flexibility to accommodate market volatility resulting from geopolitical tensions in the Middle East and other external factors affecting global energy prices. The procurement will ensure continued compliance with procurement regulations while securing value for money and mitigating risks associated with energy market volatility and supply chain disruption.