Sri Lankan government drafts new policy for liquefied natural gas
A new policy drafted on Sri Lanka’s plans to introduce natural gas has reportedly proposed that the government should adopt transparent and competitive procurement procedures in all sourcing transactions with the involvement of public sector agencies and state-owned enterprises.
The local media has reported that the draft has stated the government will adopt a transparent process of procurement of liquefied natural gas (LNG) enabling the country to acquire LNG at the most competitive prices.
“Sourcing will be conducted taking into consideration key factors such as price, time of purchase, quantity and quality requirements to give Sri Lanka a competitive advantage when negotiating contracts in the international LNG markets,” the draft has been quoted as stating.
The draft has proposed developing a pricing mechanism that “enables consumers to access natural gas at affordable prices while ensuring returns attractive enough for suppliers to encourage sustained investments.”
“The government will adopt a formula-based pricing policy for natural gas covering both supplies from indigenous sources as well as imported LNG that is aimed at ensuring affordable prices for consumers while guaranteeing sufficient returns on investments for suppliers to sustain and attract investments for growth of the industry.”
The Ministry of Highways and Road Development and Petroleum Resources Development has
invited public comments on the draft policy which will be discussed at a forum on March 28.
OSL take:
The formulation of a draft policy on the use of natural gas in Sri Lanka would ensure a transparent and equal platform for companies engaged in dealing with liquid natural gas (LNG). Therefore, foreign businesses engaged in dealing with LNG could confidently explore business/investment opportunities in carrying out dealings related to the commodity with Sri Lankan authorities.
| Article Code : | VBS/AT/25032019/Z_4 |