Kerawalapitiya LNG Terminal

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Kerawalapitiya LNG Terminal is a proposed LNG terminal in Colombo, Western district, Sri Lanka.

Location

The terminal is proposed for Kerawalapitiya near the city of Colombo.

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Project Details

• Owner: Petronet LNG 47.5%; Mitsubishi and Sojitz 37.5%; TBD Sri Lankan company 15%
• Parent company: Petronet LNG 47.5%; Mitsubishi and Sojitz 37.5%; TBD Sri Lankan company 15%
• Location: Kerawalapitiya, Colombo city, Colombo district, Western Province, Sri Lanka
• Coordinates: 7.016667, 79.883333 (approximate)
• Capacity: 2.7 mtpa
• Status: Proposed
• Type: Import
• Cost: US$250 million
• Start Year: 2021

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Kerawalapitiya LNG Terminal is a proposed import LNG terminal in Western, Sri Lanka.

In June 2017 India’s Petronet and an unnamed Japanese firm said they will form a joint venture to set up the US$250 million LNG import terminal. The terminal will be built in 2.5 to 3 years. The terminal will fuel a 300 MW Liquefied Natural Gas (LNG) power plant in Kerawalapitiya, also being set up by the sponsors. The Public Utilities Commission of Sri Lanka (PUCSL) approved the project, which will be implemented on a Build, Own, Operate and Transfer basis.

In February 2018 Petronet announced that it was signing a memorandum of understanding (MOU) with Japanese investors Mitsubishi and Sojitz to build a terminal with a capacity of 2.6-2.7 mtpa. In April 2019 the Ceylon Electricity Board announced that it had received Asian Development Bank funding to tap international expertise to prepare bid documents.

In August 2022, the Sri Lankan government cancelled its deal with Petronet LNG for the project because the sponsor was showing little movement on developing it. Instead, the government awarded the tender to the Sino-Pakistan company Engro Consortium. India's government objected to the new choice of sponsor.

However, in August 2023, the Sri Lankan government reversed its earlier decision and awarded the tender back to Petronet LNG.

As of June 2024, Sri Lanka's government was nearing a deal to give Petronet LNG to rights to import LNG into the country.