Sri Lanka Eyes Qatari LNG

With demand for natural gas growing in Sri Lanka, Colombo wants to source LNG from Qatar, world’s biggest exporter of the super chilled fuel.

“I plan to propose this during Sri Lankan President Maithripala Sirisena’s state visit to Qatar in the latter part of the year. My aim is to push for signing of more agreements, particularly in the energy sector,” Sri Lankan ambassador WM Karunadasa told Gulf Times, a newspaper, on Saturday.

He said Sirisena’s proposed Qatar visit reciprocates Emir Sheikh Tamim bin Hamad al-Thani’s state visit to Sri Lanka in March 2015, where the Qatar government expressed willingness to support the gas and oil exploration activities in Sri Lanka.

Karunadasa said that LNG from Qatar could be imported through the Port of Colombo, Gulf News reported.

“China is now developing a large hub in our port city, which is a main distribution point to adjacent countries. Even in the ancient times, the Port of Colombo was a central hub for trade and other economic activities with many countries,” the ambassador said.

For the south Asian island nation sharp fall in LNG prices in last one year has made it attractive to pursue gas based power generation. Government officials hope this move will help the country moves away from polluting fuel sources such as coal.  The government has decided to consult the Indian and Japanese governments to invest in LNG based power plants.

Meanwhile, 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.