India and Japan have reportedly joined forces to set up a US$250 million LNG import terminal in Sri Lanka as a response to growing Chinese influence in the country.
According to a report by the Press Trust of India, the country’s largest importer of the chilled fuel, Petronet LNG will be the Indian company to collaborate in the development 2 mtpa terminal that would help meet the country’s growing energy demand.
However, with Sri Lanka seeking Japanese involvement in the project, it is not yet decided which company will take part in the joint venture.
Citing Petronet LNG’s managing director and CEO Prabhat Singh said that an agreement has been reached to set up a 50-50 joint venture between Petronet LNG and a Japanese company.
Singh added that the terminal would be set up on the western coast of Sri Lanka at Kerawalapitiya, where the country intends to build a gas-fired power plant.
LNG World News Staff