Sri Lanka says no immediate LNG imports from India as infrastructure lags

Kelanitissa power station pictured in the Sri Lankan captial of Colombo. (Courtesy: Reuters photo for representation)

Sri Lanka has no immediate plans to import liquefied natural gas (LNG) from India, as the required infrastructure including storage facilities is yet to be built, the country’s energy minister said on Tuesday.

India announced last year it would supply LNG to Sri Lanka’s power plants and work on cross-border energy connectivity, including a petroleum pipeline and power grid link.

However, no progress has been made on the supply of LNG.

"We have to first build the storage facility. Construction has not commenced yet,” said Sri Lanka's energy minister Kumara Jayakody, speaking to Reuters on the sidelines of Confederation of Indian Industry's energy summit in New Delhi.

Sri Lanka is yet to finalise the LNG contract procurement with India, he said.

The minister said it would take at least three years to complete construction of the storage infrastructure, and imports would begin only after that.

While discussions to build storage had taken place under the previous government, no contracts have been finalised, he added.

“We are studying the earlier content, deciding the location, and evaluating the loan and pricing aspects,” Jayakody said.

Indian state-run firm Petronet LNG had last year signed a deal to supply LNG to Sri Lankan engineering firm LTL Holdings' power plants in Colombo.

The minister said both countries have formed a team and are working on submitting prospective reports about the planned work of developing a cross-border transmission system from southern India to the island's north.