The Asian Development Bank (ADB) is funding a study on the feasibility of setting up a liquefied natural gas (LNG) terminal in Sri Lanka to supply fuel to the Maldives.
A Sri Lanka newspaper reported that ADB will spend US$ 225,500 in the form of a grant aid on this project.
Citing ADB, the newspaper reported that according to the proposed feasibility study, a main gas hub will be established in Sri Lanka, and studies will be conducted to determine if a land-based LNG terminal or floating storage and regasification unit would be optimal to provide gas to the Maldives.
ADB also stated that LNG terminal in Sri Lanka with sufficient storage and adequate supply will benefit from lowering the energy cost of both countries.
LNG gas is used to produce electricity. This gas is moved through a highly pressurized pipe line to areas which have difficulty in producing natural gases. However LNG gas is not used in Maldives or Sri Lanka. Maldives burn diesel to provide electricity.
At the moment Maldives has two LPG terminals. Villa Gas and Maldive Gas terminals in Thilafushi provide medical and cooking gas throughout Maldives.
