Hambantota LNG Hub to cater to the needs of South Asia

A floating storage Liquefied Natural Gas (LNG) trading facility is to be set up near the Hambantoa port bringing LNG to the doorstep of Sri Lanka, with a primary aim of trading LNG in the region utilizing the strategic location of Hambantota.

Pearl Energy (Pvt) Ltd signed an agreement with the Board of Investment of Sri Lanka recently to launch this Hambantota LNG Hub.
It will become a landmark infrastructure development for the region paving the way to broader access to natural gas as a primary fuel in South Asia, a company media release revealed.
Commencing commercial operations within six months, Pearl Energy will utilise a floating storage unit (FSU) with an initial capacity of 1 million tonnes per annum (MTPA).
The company will deploy small LNG Carriers to redistribute LNG to South India and the Maldives providing LNG as a clean and affordable alternative to the industries in these locations.
Tania Siegertsz, Director, Pearl Energy, said that their ‘investors led by Omar Siraj of Saudi Arabia have placed their confidence on this project despite the global economic downturn caused by COVID-19.
‘Sri Lanka is extremely well equipped to meet the change in dynamics in the global LNG market and consolidate its position as a key player for the future,” she stated adding that a world-class LNG hub will soon be set up within the Port of Hambantota.
She expressed confidence that Sri Lanka too will be encouraged to convert its power plants to LNG thus saving millions of US Dollars whilst also increasing the efficiency and adding more power to the national grid.
The port too could also commence using LNG for bunkering thereby making the Hambantota Port and its industrial zone as a ‘Clean Energy Zone’ of the future, she added. (Bandula )