India's Petronet Plans to Build Regasification Terminal in Sri Lanka

India’s Petronet LNG is planning to set up a regassification terminal in Sri Lanka as part of a strategy to expand its footprint outside the country, Financial Express, a business daily, reported Monday.

“We have proposed the setting up of a 1 million-tonne terminal in Sri Lanka,” Prabhat Singh, managing director and CEO, Petronet LNG, told the newspaper.

According to Financial Express, the move may get diplomatic push from the Narendra Modi government. Last week, Indian oil minister Dharmendra Pradhan had discussed economic cooperation with Sri Lankan minister of international trade Malik Samarawickram in New Delhi.

Indian biggest LNG imported is also in advanced talks to build an LNG terminal in Bangladesh. We have already sent a proposal to Bangladesh. They requested for a terminal of 3.75 million tonnes, but we have told them that we would set up a 5-mt terminal. Plus, it would be expandable,” Singh said.

Petronet LNG has planned rapid expansion in its storage capacity in India as well. By 2020, the company expects to double its storage capacity to 30 million tonne. Its Dahej terminal, with 15 million-tonne capacity, is operating at 120 percent capacity. Another 5 million-tonne terminal in Kochi is operating below 10% capacity due to a lack of evacuation facility.