Petronet, Japanese Company To Set Up $300 Million LNG Terminal In Sri Lanka


Petronet, Japanese Company To Set Up $300 Million LNG Terminal In Sri Lanka

Petronet LNG Ltd, India’s biggest importer of gas, and its Japanese partners will invest USD 300 million to set up Sri Lanka’s first liquefied natural gas (LNG) terminal near Colombo, its CEO Prabhat Singh said.

The Indo-Japanese partnership will set up a 2.6-2.7 million tonnes a year floating LNG receipt facility off the island’s western coast, bigger than the previously envisaged 1.5-2 million tonnes a year facility.

Petronet will hold 47.5 per cent stake in the project while Japan’s Mitsubishi and Sojitz Corp will take 37.5 per cent stake. The remaining 15 per cent will be held by a Sri Lankan entity, he said.

“We are in the process of signing MoU with the Sri Lankan government for setting up of the LNG terminal,” Singh said. “Once the MoU is signed this month, some project related studies will be done before beginning work on the terminal.”

Explaining the reasons for setting up a bigger capacity LNG terminal, he said Sri Lanka requires 2.5-3 million tonnes of liquid gas to fire power plants. Besides, there is demand for CNG and smaller industries.

“Commercial details like exact size of the plant and investment will be worked out in the detailed feasibility report to be commissioned after signing of the MoU. Broadly, it would be about USD 300 million investment,” he said.

Sri Lankan government had in September last year issued a Letter of Intent to the company to build a floating LNG import facility to supply gas to power plants and the transport sector in the island nation. Read More

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