Sri Lanka has decided to go ahead with the setting up of a liquefied natural gas (LNG) terminal near Colombo with Indian and Japanese companies.
It was reported earlier this year that India and Japan have joined forces to set up a $250 million LNG import terminal in Sri Lanka that would help meet the country’s growing energy demand.
In this regard, the Sri Lankan government issued a letter of intent to the Indian government on September 1, Petronet LNG said in a statement on Wednesday.
India’s largest LNG importer, Petronet said it would soon form a joint venture with Japanese and Sri Lankan companies 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 in accordance with 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 in close vicinity of Colombo where most of the power projects are located, Petronet noted in the statement.
The Colombo Metropolitan Area is inhabited by more than 5 million people or roughly 25% of the total population of Sri Lanka generating over 50% of the GDP.