The Sri Lankan government and Sri Lanka Gas Terminal Ltd will hold a 15 percent shareholding in the country’s first liquefied natural gas (LNG) import terminal, a cabinet spokesperson said.
India’s largest gas importer Petronet LNG Ltd will be the biggest shareholder with a 47.5 percent stake, while Japan’s Sijitz Corporation and Mitsubishi Company of Japan will own a 37.5 percent stake.
A trilateral memorandum of agreement will be signed in this regard by Sri Lanka, India and Japan.
Development Strategies and International Trade Minister Malik Samarawickrama and Ports and Shipping Minister Mahinda Samarasinghe presented the proposal for the LNG terminal for the cabinet approval.
According to Indian media reports, the terminal with a capacity of two million tonnes of LNG will be built at a cost of US $ 250 million.
The import facility will be set up in Kerawalapitiya on the western coast. Sri Lanka has plans to build a 300 MW gas-fired power plant in Kerawalapitiya adjoining an existing power plant.
The existing plant, which uses oil to generate power, would also be converted to LNG once the terminal is set up and gas imports start. LNG has become significantly cheaper last year and many countries have begun switching their power plants to LNG.
The terminal, which will import super-cooled natural gas in ships, is likely to take two-and-half to three years to build.