India plans to supply LNG to Sri Lanka, strengthening energy collaboration amid economic recovery efforts. Discussions include infrastructure projects like a high-capacity power grid and offshore wind energy development. India’s financial support during Sri Lanka’s economic crisis in 2022 underscores their commitment to partnership in the energy sector.

India has committed to supplying liquefied natural gas (LNG) to Sri Lanka as part of efforts to enhance collaboration in the energy sector. This announcement coincides with Sri Lanka’s newly elected President Anura Kumara Dissanayake’s inaugural visit to India following his election victory. During this visit, Indian Prime Minister Narendra Modi and President Dissanayake reinforced the need for stronger energy cooperation and discussed the establishment of a high-capacity power grid and a multi-product energy pipeline with the assistance of the United Arab Emirates.

In addition, discussions include joint ventures to develop offshore wind energy potential in the Palk Straits, with environmental considerations being prioritized. In light of the severe economic crisis Sri Lanka faced in 2022, India extended substantial financial assistance amounting to $4 billion. Furthermore, a preliminary debt restructuring agreement has been reached between Sri Lanka and its international creditors, including China, to mitigate the effects of this unprecedented crisis.

The Ministry of External Affairs indicated that both leaders stressed the significance of dependable and timely energy sources to ensure energy security and satisfy the basic needs of the population. Earlier this year, Petronet LNG Ltd, India’s principal natural gas importer, formalized a Memorandum of Understanding with Sri Lanka’s LTL Holdings Ltd to facilitate the supply of LNG to power plants in Colombo, effectively establishing a supply chain from the Kochi LNG terminal.

The announcement of LNG supply from India to Sri Lanka underscores the growing bilateral energy cooperation between the two nations. Following a period of economic turmoil in Sri Lanka, India stepped in with significant financial backing, showcasing its commitment to supporting its neighbor. The efforts are not limited to LNG supply; discussions are also centered around building robust energy infrastructure including power grid interconnections and renewable energy projects. This cooperation serves a dual purpose of enhancing energy security while fostering economic recovery in Sri Lanka.

In summary, India is bolstering its energy cooperation with Sri Lanka through the provision of LNG, part of a broader strategy to enhance bilateral relations in the energy sector. The countries are also pursuing significant infrastructure projects and renewable energy initiatives amidst Sri Lanka’s ongoing economic recovery efforts. The collaborative approach indicates a strong partnership aimed at ensuring energy security and fostering regional stability.

Original Source: oilprice.com

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