Sept 06, New Delhi: India's largest importer of liquefied natural gas (LNG) company Petronet LNG Ltd will soon form a joint venture with Japanese and Sri Lankan companies to set up a Liquefied Natural Gas terminal in Sri Lanka.
The company in a statement said Sri Lanka has decided to go ahead with the setting up of an LNG terminal near Colombo with Indian and Japanese companies.
Petronet said the two countries in their efforts to strengthen relations have been in discussions on this issue for more than one year and the Sri Lankan Government has issued a Letter of Intent to the Government of India during the visit of External Affairs Minister to Colombo on Sept 1.
Important discussions were held between Minister of Petroleum Resources Development, Sri Lanka and Minister of Petroleum & Natural Gas, India in New Delhi in October 2016 which was followed by numerous meetings at Secretary/ Joint Secretary Level.
A Joint Venture of Petronet LNG Limited along with Japanese and Sri Lankan companies will develop an LNG Terminal in Sri Lanka to provide re-gassified natural gas to various power plants, domestic and transport sectors in Sri Lanka. 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 (operating mainly on costly liquid fuel) are located. The LNG terminal near Colombo would improve economics of various power plants and also generate immense direct and indirect benefits for vast majority of Sri Lankan people, Petronet said.
Petronet says the LNG imports is a significant solution to fuel the growth of Sri Lanka and will also usher in green economic growth in Sri Lanka with development of a gas based economy.
Petronet LNG Ltd is an Indian oil and gas company formed by the government of India to import liquefied natural gas and set up LNG terminals in the country.