Sri Lanka’s Energy Ministry has proposed to the Cabinet the cancellation of the Memorandum of Understanding (MOU) signed last August with India’s Petronet LNG Ltd. (PLL) and LTL Holdings, aiming to build liquefied natural gas (LNG) infrastructure and supply facilities.
The move follows the awarding of the country’s long-delayed LNG tender to a Chinese firm—a deal increasingly viewed as central to Colombo’s energy strategy amid intensifying regional competition.
As reported by ‘The Sunday Morning’, the Petronet proposal was evaluated and deemed unsuitable as a short-term solution due to concerns over its scale and implementation timeline.
It is reported that proceeding with the Indian plan would have risked creating redundant capacity and undermining the Chinese-backed tender already in progress.
The original project envisioned Petronet shipping LNG from its Kochi terminal to Sri Lanka using ISO tank containers.
These deliveries were intended to service an unloading, storage, and regasification facility in Kerawalapitiya, supplying gas to the 230 MW Sobadhanavi power plant, and offering cleaner, more reliable energy generation.
Energy Secretary Prof. Udayanga Hemapala told the Sunday Morning that Cabinet approval for the cancellation has been formally sought, with a decision expected in the coming weeks.
He added that while Sri Lanka has not yet informed Petronet or LTL Holdings, it intends to do so once Cabinet permission is secured.
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