India, Japan JV to set up LNG import terminal in Sri Lanka

India and Japan will join hands to set up a US $ 250 million liquefied natural gas (LNG) import terminal in Sri Lanka, the first collaboration between the two to counter China’s growing influence in the island nation.

Petronet LNG Ltd, India’s biggest gas importer, last year proposed to set up an up to two million tonne (MT) LNG import facility on the coast of Sri Lanka to meet its energy needs.

Sri Lanka however wanted Japan also to have a role in it.

“An agreement has been reached between the governments of India, Sri Lanka and Japan to set up the LNG terminal as a 50:50 joint venture (JV) by Petronet and a Japanese company,” Petronet Managing Director and CEO Prabhat Singh said.