India’s Petronet aims to setup LNG terminal in Sri Lanka

India’s biggest player in Liquefied Natural Gas (LNG), New-Delhi based Petronet LNG, is planning to set up a regasification terminal in Sri Lanka as part of a strategy to expand its footprint outside the country.

“We have proposed the setting up of a one million-ton terminal in Sri Lanka,” Prabhat Singh, managing director and CEO, Petronet LNG, told Financial Express. Currently, a five million-ton-per-annum (mtpa) terminal costs around Rs. 4,500-5,000 crore ($ 675-750 million).

Petronet’s aim to set up a re-gassification terminal in Sri Lanka is expected to get a diplomatic push from the Indian government. 

On 4 July, Minister of Petroleum and Natural Gas Dharmendra Pradhan had discussed economic cooperation with the island nation’s Minister of International trade Malik Samarawickrama in New Delhi.

“We had a detailed discussion on expanding oil and gas cooperation with Sri Lanka,” Pradhan said after the meeting.