Cabinet gives go-ahead to establish National Petroleum and Gas Company

The Cabinet of Ministers has approved the proposal to establish the National Petroleum and Gas Company under the Companies Act (No. 7 of 2007).

The Department of Government Information said, “it has been proved that fossil fuel/petroleum and natural gas fields are available within the territory of Sri Lanka, according to a research performed in the land area of M2 of the Mannar bed within the period of 2001 and 2013.”

Manufacturing fossil fuel/petroleum and natural gas reduces the dependency on fossil fuel/ petroleum import for local consumption and it may create the opportunity to become an exporter of natural gases in the future and earn foreign exchange thereby, the department stated further.

The National Policy on Sri Lankan Natural Gas has declared that the government would take actions to establish a national natural gas company under the public-private partnership applicable for storing, construction of pipelines, transportation and distribution infrastructure facilities development, ownership and monitoring including local natural gas exploration and production in order to engage in local exploration and production with commercial capability.

According to the Government Information Department, the aforementioned company is proposed to be established as a subsidiary company of Lanka Petroleum Corporation and the company will be entrusted with the responsibility of performing the activities and functions entrusted to it in terms of section V of Petroleum Resources Act No. 21 of 2021.