National Petroleum and Gas Company given green light

COLOMBO (News 1st); Sri Lanka's Cabinet of Ministers granted approval to establish the "National Petroleum and Gas Company" under the companies act (No. 7 of 2007).

"It has been proven that fossil fuel / Petroleum and natural gas fields are available within our territory according to the research performed in the land area of M2 of the Mannar basin within the period 2001 to 2013," said a statement from the Department of Government Information on Wednesday (24).

"Manufacturing fossil fuel / Petroleum and natural gas reduce the dependency on fossil fuel / Petroleum import for local consumption as well as it may create the opportunity to become an exporter of natural gases in the future and earn foreign exchange," it added.

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 to storing, construction of pipelines, transportation and distribution infrastructure facilities development, ownership, and monitoring including local natural gas exploration and production so that engaging in local exploration and production with commercial capability.

The Department of Government Information said that the company is proposed to be established as a subsidiary company of the Ceylon 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 the Petroleum Resources Act No. 21 of 2021.