India, Japan to build LNG terminal in Sri Lanka

In a bid to counter China’s growing influence in the Island nation, India and Japan will join hands to set up a $250 million liquefied natural gas (LNG) import terminal in Sri Lanka.

Published: 25th May 2017 05:29 AM  |   Last Updated: 25th May 2017 05:29 AM   |  A+A-

By Express News Service

NEW DELHI: In a bid to counter China’s growing influence in the Island nation, India and Japan will join hands to set up a $250 million liquefied natural gas (LNG) import terminal in Sri Lanka.

“An agreement has been reached between the governments of India, Sri Lanka and Japan to set up the LNG terminal as a 50:50 joint venture by Petronet and a Japanese company,” Prabhat Singh, managing director and CEO, Petronet, said on Wednesday.

The import facility will be set up at Kerawalapitiya on western coast, Petronet officials said. Sri Lanka has plans to build a 300 MW gas-fired power plant in Kerawalapitiya. It will offer clean fuel to the power plant in that area, which currently uses oil to generate power, officials in the company said.

“The proposed LNG terminal, which will import super-cooled natural gas in ships, will take two-and-half to three years to build,” said Singh adding that the terminal in Sri Lanka is part of Petronet’s vision to own 30 million tonne (MT) per annum of LNG import and regasification capacity by 2020.

However, Japan is yet to identify the company which will form an equal joint venture with Petronet for setting up the terminal, officials said.

Last year, Petronet LNG had proposed to set up two MT LNG import facility on the Sri Lankan coast to meet its energy needs.

The LNG major already operates a 15 MT per annum import facility at Dahej in Gujarat and has another five MT terminal at Kochi in Kerala. The Dahej project is being expanded to 17.5 MT over the next two years.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.