Posted inExploration

Sri Lanka considering purchasing LNG from Qatar

The sharp fall in LNG prices in last one year has made it attractive for Sri Lanka to pursue gas-based power generation

Sri Lanka’s government is considering purchasing liquefied natural gas (LNG) from Qatar, the world’s biggest exporter of LNG, according to a report in the Gulf Times, as demand for the fuel grows in the island country.

Sri Lanka’s Ambassador in Doha W.M. Karunadasa has said that he plans to propose the possibility of purchasing LNG from Qatar during Sri Lankan President Maithripala Sirisena’s state visit to Doha later this year.

“My aim is to push for signing of more agreements, particularly in the energy sector,” Karunadasa told the newspaper last week.

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 Qatari government expressed willingness to support oil and gas exploration activities in Sri Lanka.

Karunadasa has reportedly said that LNG from Qatar could be imported through the Port of Colombo.

“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 told the daily.

The sharp fall in LNG prices in last one year has made it attractive for Sri Lanka to pursue gas-based power generation.
Government officials hope this move will help the country to move 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.

Staff Writer

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