India-Lanka Oil&Gas talks

India’s Minister of State for Petroleum & Natural Gas, Dharmendra Pradhan, has discussed with his Sri Lankan counterpart Chandima Weerakkody, various oil and gas proposals by Indian companies for its southern neighbor.

Pradhan expressed India’s commitment to work with Sri Lanka to develop Trincomalee as a regional energy hub.

Both the petroleum Ministers also discussed the possibility of creating SAARC Energy Initiative to create sub-regional hydrocarbon infrastructure, particularly gas network, to fuel regional economies.

The discussion covered a wide range of projects, such as cooperation in bio-fuel sector and training of Sri Lankan professionals in India in the sector.

Among other proposals, discussed on New Delhi on October 6, included joint development of Upper Tank Farm by Lanka IOC (LIOC) in Trincomalee; setting up of LNG terminal at Kerawalapitiya, near Colombo, by Petronet LNG; setting up of City Gas Distribution network by GAIL and use of CNG in the automotive sector of Sri Lanka.

The Indian companies had engaged a consultant for assessing LNG demand and are developing related infrastructure in Sri Lanka. A report on this would be shared Sri Lanka shortly.

The discussions also included refurbishment of Sapugaskanda refinery and possibility of setting up of a refinery in Sri Lanka as a joint venture to meet local petroleum demand.

India has also offered to assist Sri Lanka in building oil and gas pipeline networks in Sri Lanka.

Both Ministers exchanged notes on the E&P activities in Sri Lankan Mannar basin. Shri Pradhan said that ONGC Videsh Ltd (OVL) and its parent company

ONGC, with expertise and knowledge of the geological conditions that exist in the Cauvery basin, could help in Sri Lanka’s E&P activities Mannar basin. fii-news.com