Sri Lanka to call bids to develop natural gas find
Jul 10, 2015 11:13 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka will call international bids to develop an off-shore natural gas deposit which is being abandoned by Cairn Energy, cabinet spokesman Rajitha Senaratne said.
Cairn found gas in three out of four exploration wells, but the firm has stopped further exploration after the slump in global commodity prices as the dollar strengthened.
Sri Lanka is hoping to use the gas for domestic power generation. Natural gas can be used to drive combined cycle power plants.
However Sri Lanka also has to build pipelines to take the gas from sea to the shore and then to the locations of the power plants.
The first well is thought to have about 9 billion cubic metres of gas and the second well about 51 billion cubic meters of gas.
The deal with Cairn's Sri Lanka unit is expected to run out in October 2015.