Press briefing of Cabinet Decision taken on 2018-02-27

Signing of a Tripartite Memorandum of Understanding (MoU) between Sri Lankan, Indian and Japanese Entities for the establishment of a Liquefied Natural Gas (LNG) Terminal - Floating Storage Regasification Unit (FSRU)

- The Government of Sri Lanka, with the collaboration of the Government of India and the Government of Japan has signed a Memorandum of Understanding for the establishment of a Liquefied Natural Gas (LNG) Terminal - Floating Storage Regasification Unit (FSRU) in the Kerawalapitiya area in Colombo and a Natural Gas Terminal for the distribution of infrastructure facilities for electricity power generation. In the joint venture established for the implementation of the project, it is proposed to award 15% equity of the joint venture with the State owned Sri Lanka Gas Terminal Company Ltd., to vest 47.5% equity with Petronet LNG Limited nominated by the Government of India and to vest 37.5% of equity with Sojitz Corporation and Mitsubishi Corporation nominated by the Government of Japan.

Accordingly, the joint proposal made by Hon. Malik Samarawickrema, the Minister of Development Strategies and International Trade and Hon. Mahinda Samarasinghe, the Minister of Ports and Shipping, to sign a MoU with the relevant parties with the objective of making a basic feasibility study and to vest authority with the Sri Lanka Gas Terminal Company Ltd., to enter into Agreements with the Indian and Japanese parties to establish the proposed joint venture, was approved by the Cabinet.