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India’s Petronet LNG Limited to supply gas to Sri Lanka from next year

By: Staff Writer

February 13, Colombo (LNW): India’s Petronet will supply liquefied natural gas (LNG), to Sri Lanka, beginning 2025, which will be utilised to run power plans with 300 megawatt (MW) capacity.

Initially, the LNG will be supplied through containers, and later the state run company, will establish a floating storage re-gasification unit (FSRU), in the island nation.

Petronet LNG CEO A.K. Singh said, “They, (Sri Lanka), have already installed about 300 MW of gas based, power plants, and still they don’t have gas. Sri Lanka approached us to set up an LNG terminal which is going to take more time, about three to four years, to set up an FSRU based terminal.”

Singh was speaking on the side-lines of the India Energy Week (IEW)in New Delhi .As a stop gap arrangement, Singh explained that Petronet is working out to supply LNG through containers loaded on ships.

About 850 tonnes of gas per day will be supplied to the island nation in containers of 17 tonnes each. The supply will begin by 2025.“Probably Sri Lanka requirement is almost 50 containers per day, Singh said.

The supplies would be for five years, during which the company, will also build a FSRU at Colombo port.

The FSRU will take around one and a half years of time, because the unit will require 12-15 acre of land.

“We have worked three years for setting up the terminal. The capex for FSRU based terminal will be around INR 2,500 crore,” he added.

Indian Petronet recieved a letter of intent from the Sri Lankan government to set up LNG terminal near Colombo in Sri Lanka, the company announced on Wednesday.

‘The two countries in their efforts to strengthen relations have been in discussions on this issue since last more than one year [sic].

The Sri Lankan Government issued a Letter of Intent to the Govt. of India during the visit of External Affairs Minister to Colombosime times back ,’ the company explained.

Petronet LNG Limited, India’s largest LNG importer, will soon form a joint venture with Japanese and Sri Lankan companies.

A joint venture of Petronet LNG Limited along with Japanese and Sri Lankan companies will develop an LNG Terminal in Sri Lanka to provide regassified 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 1 year 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.

As of now, 82 percent of the primary energy consumption is met through petroleum products and biomass in the country.

‘It’s a giant step towards energy security of Sri Lanka and underscores the ‘neighbourhood first’ policy of Prime Minister Modi. It shall pave the way for further cementing primeval bonds,’ the company noted.

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