Pearl Energy to set up LNG plant in Hambantota

The Board of Investment of Sri Lanka has signed an agreement Pearl Energy (Pvt) Ltd to launch ‘Hambantota LNG Hub’ – a floating storage LNG trading facility at the Port of Hambantota, bringing LNG to the doorstep of Sri Lanka, with a primary aim of trading LNG in the region by utilising the strategic location of Hambantota.

The agreement was signed by Susantha Ratnayake, Chairman BOI and Ms. Tania Siegertsz - Director, Pearl Energy. The total investment of the project is US$97.2 million.

“The LNG hub 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. 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 re distribute LNG to South India and the Maldives providing LNG as a clean and affordable alternative to the industries in these locations,” the BOI said in a media release.

‘It is our pleasure to embark on this journey of bringing clean energy to the doorstep of Sri Lanka and the region. Taking the ‘early mover’ advantage we will strive to place Sri Lanka as a future LNG Hub of the world. Factors including the strategic location of Hambantota, a newly established stable governmenta and its investor-friendly policies and the fast growing regional demand for LNG encouraged our investors led by Mr. Omar Siraj of Saudi Arabia to place their confidence on this project despite the global economic downturn caused by the COVID-19 pandemic,” said Ms. Tania Siegertsz - Director, Pearl Energy.

She said that 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. “Though our project is launched targeting regional trade, the fact is that a world class LNG hub will soon be within the Port of Hambantota, (and) we are confident that Sri Lanka too will be encouraged to convert its power plants to LNG thus saving millions of USD whilst also increasing the efficiency and producing more power to the national grid. The port too could also commence using LNG for bunkering thereby making Hambantota Port and its industrial zone as a ‘Clean Energy Zone’ of the future,” Ms. Tania stated further.

Above from left; Sanjaya Mohottala, Director General, BOI, Ms. Tania Siegertsz- Director, Pearl Energy and Susantha Ratnayake, Chairman BOI.