Sri Lankan government to develop an offshore natural gas deposit in the Mannar Basin to get fuel for power plant
Director General of Sri Lanka’s Petroleum Resources Development Secretariat (PRDS), Vajira Dassanayake has reportedly said that the Sri Lankan government is looking at calling for bids to develop an offshore natural gas deposit in the Mannar Basin with the aim of getting fuel for a power plant nearby.
Dassanayaka has told a media conference recently that the Secretariat will first offer the M2 block where Cairn India found natural gas in two test wells.
He has further explained that government officials are expected to meet shortly to decide on the tender.
The Secretariat has also received proposals from investors interested in other blocks in the Mannar Basin.
“Our aim is to develop the Dorado well in the M2 block to supply natural gas to generate electricity,” Dassanayaka has been quoted as saying in the media.
The well is 38km from the Norochcholai coal power plant on the northwest coast.
“We estimate the deposit has 350 billion cubic metres of natural gas,” Dassanayaka has further noted. “It’s a small discovery but enough for domestic consumption, for a 300MW power plant for 20 years.”
According to reports, the PRDS was having talks with the power ministry and Ceylon Electricity Board state power utility on an agreement to buy the gas for power generation.
OSL take:
The Sri Lankan government has taken several key steps in the direction of promoting oil exploration in the offshore deposit the Mannar Basin. It is in this backdrop that the government is looking at calling for bids to develop the natural gas deposit in the Mannar Basin. This is a new investment opportunity for foreign businesses engaged in the petroleum and related sectors. Therefore, interested businesses could look at investing in the growing opportunities in Sri Lanka’s petroleum sector.
| Article Code : | VBS/AT/20181025/X_1 |