Sri Lanka eyes Qatari LNG supplies

Sri Lanka is looking to import oil products, LPG, and LNG from Qatar, as the island nation looks to overcome an energy crisis and secure much-needed supplies.

Qatar’s energy minister and chief executive of LNG producing giant QatarEnergy, Saad Sherida Al-Kaabi, met with Sri Lanka’s power and energy minister, Kanchana Wijesekera, in Doha on June 28.

“Discussions during the meeting dealt with energy relations and cooperation between Qatar and Sri Lanka and means to enhance them,” QatarEnergy said in a short statement.

Wijesekera said in a social media post that he had discussed with Al-Kaabi the supply of petroleum products, LPG and LNG to Sri Lanka to “overcome the energy crisis with the assistance of QatarEnergy and the Qatar Fund for Development”.

The minister also met with officials from the Qatar Fund for Development to discuss a possible credit line facility for petroleum and gas supply.

QatarEnergy and its unit Qatargas are currently expanding Qatar’s LNG capacity from 77 million tons to 110 million tons.

In February last year, QatarEnergy took a final investment decision on the $28.75 billion North Field East (NFE) expansion project.

The firm is also developing a second phase to further boost capacity to 126 Mtpa by 2027 as well as additional expansions.

On the other side, Sri Lanka currently has no LNG import facilities, but US LNG player New Fortress Energy is working on an LNG-to-power development.

NFE and the government of Sri Lanka executed a definitive agreement in September last year under which NFE would invest in energy infrastructure in Sri Lanka and develop a new LNG import terminal off the coast of Colombo.

NFE previously said Sri Lanka’s first LNG terminal could begin operations in 2023.

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