India's Petronet LNG signs MoU with Sri Lanka’s LTL for LNG supply
India’s largest LNG importer, Petronet LNG, has signed a memorandum of understanding (MoU) with Sri Lanka’s LTL Holdings (LTL) for the supply of LNG to LTL’s dual-fuelled power plant in Kerawalapitiya, Colombo, the Indian company announced on August 20 in a stock exchange filing.
Under the MoU, both parties have agreed to develop an LNG supply chain from Petronet’s Kochi LNG terminal to LTL’s power plant in Kerawalapitiya within a specified timeline. The proposed LNG supply from the Kochi terminal will be transported via LNG ISO tank containers using a multi-modal transport system.
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The initial term for LNG supply is set at five years, with the possibility of extension subject to mutual agreement. The Sobadhanavi power plant at Kerawalapityta is owned and operated by Lakdhanavi, the power development arm of LTL. The plant will add 350 MW of power to Sri Lanka's grid by the first quarter 2025.
"This collaboration marks a new chapter in the energy partnership between India and Sri Lanka, reflecting the shared commitment to strengthening energy security for Sri Lanka and promoting reliable, cleaner and sustainable energy supplies, as key economic enabler for Sri Lanka’s development," Indian high commission in Sri Lanka said in a separate statament.
Petronet LNG currently operates two land-based LNG import and regasification terminals on India’s west coast, located in Dahej, Gujarat (with a capacity of 17.5mn tonnes/year), and Kochi, Kerala (with a capacity of 5mn tonnes/year).
The company is building its third terminal in east India. The proposed facility at Gopalpur Port in the state of Odisha will feature a floating storage regasification unit (FSRU) with an initial capacity of around 4mn tonnes/year, expandable to 5mn tonnes/year as a land-based terminal.