India looks to develop gas infrastructure in Sri Lanka

The Dollar Business Bureau

India has offered to work with Sri Lanka in developing gas infrastructure and building oil and gas pipeline networks in the country. 

Several Indian companies have already engaged consultants for evaluating LNG demand and are currently developing related infrastructure in Sri Lanka.

On Wednesday, the Indian Petroleum & Natural Gas Minister Dharmendra Pradhan met his Sri Lankan counterpart Chandima Weerakkody in New Delhi to discuss various Indian proposals, including joint development of Upper Tank Farm by Lanka IOC (LIOC) in Trincomalee; setting up of LNG terminal at Kerawalapitiya near Colombo by Petronet LNG Ltd; setting up of City Gas Distribution network by GAIL and using CNG in the automotive sector of Sri Lanka.   

Welcoming India’s cooperation, Weerakkody said though India’s gas-based business and infrastructure is only about 20 years old, it has the requisite experience and expertise in the sector and is ready to share the same with Sri Lanka. 

The Indian minister also discussed Sri Lanka’s LIOC activities, including increasing the number of its retail outlets and bunkering operations and granting a license to LIOC for marketing ATF and LPG.  

India and Sri Lanka also considered refurbishment of Sapugaskanda refinery and the possibility of setting up of a refinery in Sri Lanka to address the local needs.  

Pradhan said ONGC Videsh Ltd (OVL) and its parent company ONGC had the required expertise of carrying out geological conditions that exist in the Cauvery basin. “These conditions are similar to Mannar basin in Sri Lanka and, hence, OVL could be a natural partner in carrying out E&P activities in this area,” he said. 

He also expressed India’s commitment to work with Sri Lanka to develop Trincomalee as a regional energy hub.  

The two petroleum ministers also discussed the possibility of creating SAARC Energy Initiative to create sub-regional hydrocarbon infrastructure, particularly gas network, to fuel the two countries’ economies in a sustainable manner. They also discussed cooperation in the bio-fuel sector, including training of Sri Lankan professionals in India in that sector.