The Sri Lankan government has given the go ahead for the setting up of an LNG terminal near Colombo with a joint venture between Indian and Japanese companies.
Petronet LNG Limited (India's largest LNG importer) will soon form a joint venture with Japanese and Sri Lankan companies. The Sri Lankan Government issued a Letter of Intent to the Government of India during a visit of External Affairs Minister to Colombo on September 1.
The JV 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 2 years after completion of initial formalities.
The LNG terminal would be set up on the western coast of Sri Lanka close to the capital city of Colombo. Sri Lanka's economy is growing at a rapid pace of 4 to 5 per cent and primary energy consumption is estimated to increase to 19 MMTOE by the year 2030.