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Petronet to build LNG terminal in Sri Lanka

Written by  AOG Staff Saturday, 09 September 2017 22:53
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Indian LNG importer Petronet LNG will soon form a joint venture with Japanese and Sri Lankan companies to build a liquefied natural gas (LNG) terminal near Colombo.

The Sri Lankan government has issued a letter of intent to the Government of India.

The capacity of the LNG terminal will be decided upon the gas demand in Sri Lanka and is expected to be developed in two years after completion of initial formalities.

The LNG terminal would be set up on the western coast of Sri Lanka in close vicinity of Colombo where most of the power projects are located.

According to Petronet, the Colombo Metropolitan Area is inhabited by more than 5 million people or roughly 25% of the total population of Sri Lanka generating over 50% of the GDP. The LNG terminal near Colombo would improve the economics of various power plants and also generate immense direct and indirect benefits for the vast majority of Sri Lankan people.

The Sri Lankan economy is growing at a rapid pace of 4-5% and primary energy consumption is estimated to increase to 19 MMtoe by the year 1930. As of now, 82% of the primary energy consumption is met through petroleum products and biomass, Petronet said.

Not much success has been achieved so far in the development of any indigenous gas fields. LNG imports is a significant solution to fuel the growth of this nation, as it will usher in green economic growth in Sri Lanka with development of a gas based economy

Moreover, this deal will reaffirm traditionally and friendly relations between India and Sri Lanka and their continuing endeavors to enhance bilateral relations through increased economic, investment and development cooperation for mutual benefits of the two nations.

Image: LNG vessel / Petronet

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