Modi says India plans to supply LNG to Sri Lanka, connect power grids (updated)

Petronet LNG

16/12/2024 10:50

(Adds details of joint statement from paragraph 2)
       NEW DELHI, Dec 16 (Reuters) - India plans to supply
liquefied natural gas to Sri Lanka's power plants and will work
on connecting the power grids of the two countries as well as
lay a petroleum pipeline between the neighbours, Indian Prime
Minister Narendra Modi said on Monday.
    Modi was speaking at a joint press briefing with Sri Lankan
President Anura Kumara Dissanayake in New Delhi.
    Dissanayake is on his first official visit to Sri Lanka's
powerful neighbour after winning the presidency in September and
securing a landslide parliamentary election victory last month. 
    Indian state-run firm Petronet LNG  PLNG.NS  has signed a
deal to supply liquefied natural gas to Sri Lankan engineering
firm LTL Holdings' power plants in Colombo for five years
through its terminal in the southern Indian city of Kochi.
        Both sides also discussed a plan to connect power grids
and lay a multi-product petroleum pipeline between the two
countries, a joint statement from the Indian External Affairs
Ministry said.  
  
        The two countries also agreed to jointly develop
offshore wind power potential in the Palk Straits, an area where
India's 
    Adani Green Energy
     Ltd.  ADNA.NS  already has plans to invest $442 million in
two wind power stations. 
        Sri Lanka is 
    reviewing
     the wind power project along with a $553 million terminal
project at the Colombo port also linked to Adani Ports
 APSE.NS . But it was unclear if the projects were discussed
during the meeting between Modi and Dissanayake.
  
        Last month, U.S. authorities accused Adani Group
Chairman Gautam Adani and seven others of being part of a $265
million scheme to bribe Indian officials, and of misleading U.S.
investors while raising funds there.
  
        The ports-to-power conglomerate has termed the
allegations "baseless" and said it would seek "all possible
legal recourse".     
  
        India extended more than $4 billion in aid to Sri Lanka
when the island nation's economy plunged into a severe financial
crisis in 2022 and entered into a preliminary debt restructuring
agreement, along with other bilateral creditors Japan and China,
in July. 
  
        The two countries will now finalise discussions on the
bilateral memorandum of understanding needed to complete the
debt restructuring process, the joint statement added.
  

 (Reporting by Shanima A in Mumbai and Shivam Patel in New
Delhi; Editing by YP Rajesh)
 ((shanima.a@thomsonreuters.com; (Direct: +91 72 5956 7774);))