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 Colombo on Sept 1," 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 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 operating mainly on costly liquid fuel are located.
As of now, 82 percent of the primary energy consumption is met through petroleum products and bio-mass 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.
(Anadolu Agency)
