LNG focus for Colombo terminal

Colombo port The terminal project is estimated to cost between USD$550-$600m

Liquefied Natural Gas (LNG) is set to be a priority initiative in the development of Colombo Port’s East Container Terminal in Sri Lanka.

Media reports say the proposed projects include a 500MW capacity LNG power plant.

Among the other LNG projects expected to be proposed are an LNG terminal within the complex and a Floating Storage Regasification Unit (FSRU) based in Kerawalapitiya /Colombo.

To manage these particular projects, a joint venture will be formed be formed among developers in Sri Lanka, India and Japan. The structure and operation of this partnership will be confirmed by the end of July.

Discussions are also taking place regarding a piped gas distribution system, retail outlets for supply of Compressed Natural Gas (CNG) to the transportation sector and conversion of liquid fuel-based power plants to R-LNG fired power plants in Sri Lanka.

As reported by Port Strategy earlier this month, a number of consortiums are bidding to win the development rights for the terminal project, estimated to cost between USD$550-$600m, according to reports.

One consortium, led by Hayleys bidding, includes Westports Holdings, Mitsui Corp, Mitsubishi Logistics, NYK and Tata Realty and Infrastructure.

Other consortiums bidding for the project include APM Terminals, John Keells Holdings, Maersk Line and Container Corp of India, and the consortium of Port of Singapore Authority, Pacific International Lines, India’s Shapporji Pallonji and the Aitken Spence Group.

The winner of the tender is expected to be announced at the end of May.