India, Japan JV to set up LNG import terminal in Sri Lanka

Posted by Daily Shipping Times on 26-05-2017        Tweet

NEW DELHI: India and Japan will join hands to set up a $ 250 million LNG import terminal in Sri Lanka, the first collaboration between the two to counter China’s growing influence in the Island nation.

Petronet LNG Ltd, India’s biggest gas importer, last year proposed to set up an up to 2 million tonne (MT) liquefied natural gas (LNG) import facility on the coast of Sri Lanka to meet its energy needs.

“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,” Petronet Managing Director and CEO Prabhat Singh said here.

Singh said the import facility will be set up at Kerawalapitiya on Western Coast. Singh said the LNG terminal, which will import super- cooled natural gas in ships, will take two-and-half to three years to build.

The terminal in Sri Lanka is part of Petronet’s vision to own 30 MT per annum of LNG import and re-gasification capacity by 2020, he said.

Petronet already operates a 15 MTPA import facility at Dahej in Gujarat and has another 5 MT terminal at Kochi in Kerala.