Bunkering in Sri Lanka

This is according to a senior official with Seaspan Ship Management Ltd (SSML) who is quoted as saying that Colombo, Hambantota and Galle are all strategically located to take advantage of these opportunities.

SLPA is currently overseeing a major development project in its ports, especially in Hambantota in the south of the country. Construction on the new port began back in 2008 and the plan is to develop an LNG bunkering facility, it already has one in operation at Colombo.

The Sri Lankan press says that this is all part of the strategic “Vision2020” plan to make the port a key logistics hub in the region.

But SLPA will need to be quick because Singapore may be able to offer LNG bunkering by next year.

The development process at Hambantota may be helped along by talk of the vast space next to the port being earmarked for a LNG power plant.

There are newly discovered gas deposits found in deposits off the Mannar Coast and production is expected to commence in 2017 if the deposits are found to be commercially viable.

Lanka Business Online says for this reason Sri Lankan power officials have been told to put the brakes on coal and opt for gas instead.

Analysts say that if Sri Lanka is savvy it can subsidise LNG below market prices at a loss of export revenues to help bring the cost of the fuel down.