Petronet LNG to Provide Gas Supply to Sri Lanka

Petronet LNG is set to supply liquefied natural gas (LNG) to Sri Lanka, commencing in 2025, to fuel power plants with a capacity of 300 megawatts (MW).

Initially, LNG will be transported via containers, with plans for the state-run company to establish a floating storage regasification unit (FSRU) in the island nation at a later stage.

A K Singh, CEO of Petronet LNG, highlighted the urgency of Sri Lanka's need for gas, especially considering the existing gas-based power plants totaling 300 MW. Speaking at the India Energy Week (IEW), Singh mentioned that setting up an LNG terminal in Sri Lanka would take an estimated three to four years, hence the interim solution of supplying LNG through containers.

Singh explained that Petronet is strategizing to supply approximately 850 tonnes of gas per day to Sri Lanka, with each container holding 17 tonnes of gas. The supply is scheduled to commence by 2025, addressing the immediate gas requirements of the island nation.

Over a five-year period, Petronet plans to deliver LNG via containers while simultaneously constructing an FSRU at Colombo port. The FSRU project is expected to take around one and a half years to complete, requiring 12-15 acres of land.

Singh emphasized the extensive planning involved in setting up the terminal, with three years dedicated to the project thus far. The capital expenditure for the FSRU-based terminal is estimated to be around ₹2,500 crore.

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