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Sri Lanka’s BOI approves floating LNG unit in Hambantota

ECONOMYNEXT – Sri Lanka’s Board of Investment said it had signed a 97.2 million dollar agreement allowing setting up of floating liquefied natural gas storage unit off Hambantota which will plans to re-export fuel to the Maldives and the rest of South Asia.

The agreement was signed by Susantha Ratnayake, Chairman BOI and Tania Siegertsz, director of Pearl Energy, the project company.

The BOI quoted Siegertsz as saying that the Pearl Energy was backed Omar Siraj, an investor based in Saudi Arabia.

Floating terminal will have a capacity of million tonnes per annum. The firm will re-distribute the gas to the Maldives and South Asian nations using small LNG carriers.

“Though our project is launched targeting regional trade, the fact that a world class LNG hub will soon be within the Port of Hambantota, we are confident that Sri Lanka too will be encouraged to convert its power plants to LNG..,” Siegertsz had said.

“The Port too could also commence using LNG for bunkering thereby making Hambantota Port & its industrial Zone as a ‘Clean Energy Zone’ of the future.”

The firm said it hoped to start operations in six months. (Colombo/Aug24/2020)