India has announced plans to supply liquefied natural gas (LNG) to Sri Lanka, strengthening energy cooperation between the two nations, according to the Indian Ministry of External Affairs. This initiative comes as Sri Lanka’s newly elected president, Anura Kumara Dissanayake, visited India.
Indian Prime Minister Narendra Modi welcomed President Dissanayake during his first visit to India since his election in September. The two leaders discussed several energy-related initiatives, including the creation of a high-capacity power grid interconnection between India and Sri Lanka. They also explored trilateral cooperation with the United Arab Emirates (UAE) to develop a multi-product pipeline from India to Sri Lanka, aimed at ensuring affordable and reliable energy supplies.
Both countries are also considering joint offshore wind power projects in the Palk Straits, with a focus on environmental sustainability. India’s Ministry of External Affairs emphasized the importance of these collaborations in boosting energy security.
In addition to energy initiatives, India has been a crucial financial partner for Sri Lanka, providing $4 billion in support during the island nation’s 2022 economic crisis. This aid included emergency financing and foreign exchange support. India, along with other international creditors such as China, has entered into a preliminary agreement with Sri Lanka for debt restructuring in the wake of the country’s unprecedented economic challenges.
The two leaders also underscored the importance of ensuring reliable, affordable, and timely energy resources to meet the basic needs of their populations. They highlighted the need to expedite ongoing energy cooperation projects between the two nations.
Earlier this year, Petronet LNG Ltd, India’s largest importer of natural gas, signed a Memorandum of Understanding (MoU) with LTL Holdings Ltd of Sri Lanka. The agreement involves supplying LNG to LTL’s dual-fueled power plants in Colombo. The two companies plan to establish an LNG supply chain from Petronet’s Kochi LNG terminal to LTL’s power plants, using LNG tank containers and a multi-modal transport system. The initial supply agreement is set for five years, according to Petronet LNG.
This energy cooperation between India and Sri Lanka marks a significant step toward strengthening bilateral ties and addressing the energy needs of both nations.
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