Sri Lanka: Petronet and Mitsubishi and Sojitz Corp to build $300mn LNG terminal

By Sophie Chapman
The Indian gas firm, Petronet, and Japanese Mitsubishi and Sojitz Corp have announced their partnership to develop Sri Lanka’s first liquef...

The Indian gas firm, Petronet, and Japanese Mitsubishi and Sojitz Corp have announced their partnership to develop Sri Lanka’s first liquefied natural gas (LNG) terminal.

The floating terminal will be located near the country’s capital, Colombo, and will cost the firm’s US$300mn.

According to the CEO of Petronet, Prabhat Singh, the terminal will have a 2.6mn to 2.7mn tonne annual LNG capacity.

Initially, the facility was only anticipated to have a 1.5mn to 2mn tonne capacity per year, but this was increased to meet power plant demand.

SEE ALSO:

“We are in the process of signing MoU with the Sri Lankan government for setting up of the LNG terminal,” the Economic Times reported Singh saying.

“Once the MoU is signed this month, some project related studies will be done before beginning work on the terminal.”

“Commercial details like exact size of the plant and investment will be worked out in the detailed feasibility report to be commissioned after signing of the MoU. Broadly, it would be about USD 300 million investment.”

Petronet will have a 47.5% stake in the project, with Mitsubishi and Sojitz owning 37.5%, and the remaining 15% to be owned by a Sri Lankan entity.

Share

Featured Articles

UK Government awards £54mn in heat network funding

Funding will support the development of schemes in London, Bedfordshire and Woking that use low-carbon heat sources

Shell posts $11.5bn second quarter profit

Shell's earnings fuelled by ongoing price rises and geopolitical instability as the energy major places greater focus on natural gas investments

bp opens first electric truck fast-charging facilities

Operated by bp’s Aral brand, the retail site at Schwegenheim in Rheinland-Pfalz has two 300kw chargers intended for electric trucks

Shell commits to developing Jackdaw gas field in North Sea

Oil & Gas

Prospex Energy raises £1.87m for Selva gas field development

Oil & Gas

Shanghai Electric Group launches low carbon business

Utilities