Petronet signs MoU with LTL Holdings to supply LNG to Sri Lankan power plants

Through this MoU, both companies have agreed to develop an LNG supply chain from Petronet’s Kochi LNG terminal to LTL’s power plants in Colombo within a set timeline (File photo)

Oil and gas company Petronet LNG signed a Memorandum of Understanding (MoU) with Sri Lanka's LTL Holdings Limited on August 20 to supply liquefied natural gas (LNG)  to LTL's dual-fuel power plants in Colombo.

Through this MoU, both companies have agreed to develop an LNG supply chain from Petronet’s Kochi LNG terminal to LTL’s power plants in Colombo within a set timeline, Petronet said in an exchange filing.

The LNG will be transported via ISO tank containers using a multi-modal transport system. The initial supply agreement is for five years, with the option to extend it based on mutual agreement, according to the statement.

Last month, Petronet reported a 34 percent year-on-year increase in consolidated net profit at Rs 1,100.76 crore in the first quarter of financial year 2024-25. Consolidated net profit of the gas distributor stood at Rs 819.28 crore in the same period a year ago. Sequentially, net profit was up by almost 50 percent from Rs 734.07 crore recorded in the quarter ended March 31, 2023.

The company was able to achieve higher throughput and robust financial results owing to stable LNG prices, better capacity utilization of its terminals and efficiency in its operations, it said while announcing first quarter results on July 24.