Press briefing of Cabinet Decision taken on 2010-12-08

Introduction of Natural Gas to meet energy needs of Sri Lanka

- Natural Gas is the fastest growing energy source in the world and the most flexible fuel that can be used directly for transport and power generation. Natural gas is a raw material for the production of a variety of chemicals, plastics and Urea. It has been identified that the Power Sector, Transport Sector, Fertilizer Subsidy Programme as well as domestic and industrial usages would benefit by the introduction of natural gas. Some of the advantages are -
* Liquid Natural Gas (LNG) is cheaper in price than any Liquid Petroleum Products and even LP Gas.
* LNG is a cleaner fuel when compared to coal, diesel, petrol and other fuel
* its high purity results in generating energy at a cheaper cos
Cabinet approval was granted to appoint a High Powered Steering Committee to implement the above policy and to authorize the Ministry of Petroleum Industries to explore possibility of arranging LNG on long-term supply arrangement on Government to Government basis.