India's largest LNG company Petronet LNG Ltd has announced plans to start supplying LNG to Sri Lanka from 2025 onwards. LNG shipping is in its infancy. in containers loaded on ships and then plans to build an import terminal, the company and CEO revealed on Thursday.

Demand for LNG in Sri Lanka mainly for power generation and industrial applications has resulted in many years of negotiations with various suppliers, including Petronet. But only now that the country has reached an agreement to procure liquefied natural gas from an Indian company.

According to the CEO of Petronet Akshay Kumar Singh, the company supplies 850 tons of gas to Sri Lanka every day, packed in 17-ton containers. This supply agreement will last for five years, during which time Petronet will build a floating LNG terminal in the port of Colombo, with the aim of being operational within 18 months.

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In addition, Petronet continues to commission a floating storage regasification unit (FSRU) in Colombo. It is awaiting approval from the Sri Lankan government by 2025 and is expected to be completed by 2028. Singh pegged the investment at around Rs 2,500 crore, pending a detailed feasibility report after approval.

Sri Lankan Minister of Energy Kanchana Wijesekera confirmed the ongoing discussions between Petronet and the Sri Lanka Power Plant Authority, emphasizing strategic cooperation and importance to meet the energy needs of both countries.