Government to establish “National Petroleum and Gas Company”
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Cabinet approval has been granted for the establishment of the “National Petroleum and Gas Company”.
The company will be established under the Companies Act (No.
7 of 2007) as a subsidiary company of the Lanka Petroleum Corporation.
The Government said it has been proved 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 bed within the
period 2001 to 2013.
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 thereby.
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 Government said the national natural gas 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.
Accordingly, the proposal to establish the” National
Petroleum and Gas Company” under the Companies Act (No. 7 of 2007) submitted by
the Minister of Power was approved by the Cabinet of Ministers.
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