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SAFETY4SEA

Sri Lanka to acquire LNG terminal

by The Editorial Team
September 7, 2017
in Fuels
lng

Above image is used for illustration purposes only / Credit: Petronet LNG

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Sri Lanka has decided to go ahead with the setting up of an LNG terminal near Colombo with Indian and Japanese companies. After having been in discussions since last more than one year, the Sri Lankan Government issued a Letter of Intent to the Government of India, on September 1st.

To this end, Petronet LNG Limited, India’s largest LNG importer, will soon form a joint venture with Japanese and Sri Lankan companies. The JV will develop a LNG Terminal in Sri Lanka to provide regassified natural gas to various power plants, domestic and transport sectors in the country. The capacity of the LNG Terminal will be decided upon the gas demand in Sri Lanka and is expected to be developed in 2 years after completion of initial formalities.

The LNG terminal would be set up on the western coast of Sri Lanka, in close vicinity of Colombowhere most of the power projects (operating mainly on costly liquid fuel) are located. The LNG terminal near Colombo would improve economics of various power plants and also generate direct and indirect benefits for Sri Lankan people.

As of now, 82% of the primary energy consumption in Sri Lanka is met through petroleum products and bio-mass. Not much success has been achieved so far in development of any indigenous gas fields. LNG imports is a significant solution to fuel the growth of this nation. This is also expected to usher in green economic growth in Sri Lanka with development of a gas based economy.

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Sri Lanka to acquire LNG terminalSri Lanka to acquire LNG terminal
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Tags: IndiaJapanLNG infrastructure
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