India to start supplying gas for Sri Lankan power plants in 2025

The company is also expanding capacity of the Dahej terminal by 5 million tonne per annum (mtpa) to 22.5 million tonnes and is also looking to build a new terminal in Odisha.
The company is also expanding capacity of the Dahej terminal by 5 million tonne per annum (mtpa) to 22.5 million tonnes and is also looking to build a new terminal in Odisha.

Summary

  • Sri Lanka has been looking to source LNG to run its gas-based power plants along with other industries

BETUL (GOA) : State-run Petronet LNG is expected to supply liquefied natural gas (LNG) to Sri Lanka starting 2025, said the company’s managing director and chief executive officer A.K. Singh.

Speaking to reporters on Thursday on the sidelines of the India Energy Week (IEW), Singh said the company would also set up an LNG terminal at Colombo port with an investment of about 2,500 crore.

“They (Sri Lanka) have already installed a 300 MW gas-based power plant. They have approached us to set up an LNG terminal which is going to take more time—3 to 4 years time to set up an FSRU (floating storage regasification unit)-based terminal. As a stop-gap arrangement we are working out to supply through ISO containers," he said.

He said daily supplies would be about 50 containers with each having 17 tonnes of LNG, which would amount to 850 tonnes per day.

Sri Lanka has been looking to source LNG to run its gas-based power plants along with other industries. The proposed FRSU has been under discussion for a few years now.

The Petronet CEO said that from the date of commencement of the project, the FSRU or the LNG terminal would take about three-and-a-half years to be completed. He also said that the company will prepare a detailed feasibility report (DFR) once the Sri Lankan government gives formal approval to the project.

The supplies would from the Kochi LNG terminal and the CEO said that the proposed supplies would be a “good utilization" of the terminal which is currently under-utilized.

Petronet LNG has long-term LNG purchase agreements from Qatar and Australia, and operates two land-based regasification terminals at Dahej in Gujarat with a capacity of 17.5 million tonnes per annum (mtpa) and a 5-mtpa unit at Kochi in Kerala.

The development comes on the heels of Petronet signing a long-term LNG sale and purchase agreement on Tuesday for around 7.5 million tonnes per annum of LNG with QatarEnergy.

This 20-year deal is an extension of an existing contract for LNG supply of signed in 1999 for supplies till 2028. Under the new agreement, LNG supplies will run from 2028 till 2048.

The company is also expanding capacity of the Dahej terminal by 5 million tonne per annum (mtpa) to 22.5 million tonnes and is also looking to build a new terminal in Odisha.

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