Lanka LNG terminal

Vol 15, PW 7 (06 Oct 11) News in Brief

Sri Lankan authorities want Petronet-LNG to set up a LNG terminal in the country, possibly on the west coast near Colombo.

“Sri Lanka uses large quantities of naphtha and fuel oil,” explains an observer. “It wants to shift to R-LNG which can also be used as raw material at many proposed chemical and fine chemical factories.

” Sri Lanka’s cabinet is believed to be seriously considering the proposal to set up the LNG terminal and favours a public-private partnership. However, Petronet-LNG is likely to prefer full-ownership if it gets involved.

“The project is at a conceptual stage,” confirms a Petronet-LNG source, when contacted by this report. “We await word from Sri Lanka before moving forward.

” Building an LNG terminal in infrastructure-poor Sri Lanka will be extremely challenging, adds an industry source, even for an established player like Petronet-LNG. “There has been no authentic survey of gas demand,” we hear.

“Funding the project will be difficult.”