Wednesday, October 5, 2011

Discovery of Gas Deposit in Sri Lanka


The group Cairn India announced Sunday the discovery of offshore natural gas field off the west coast of Sri Lanka, something that had never seen in this country energy supply mainly depends on imports.
Recall that in August, Cairn India, the Indian subsidiary of Scottish Cairn Energy, has initiated exploration in the Mannar Basin, seismic studies have previously indicated to the presence of gas and oil.

Cairn has also indicated that further drilling will be conducted to measure the commercial interest of the discovery, noting also that the deposit was drilled 4.3 kilometers deep. This is an event that could significantly change the economic situation of Sri Lanka.  While drilling undertaken in early 1970 by Russian companies had failed to demonstrate significant reserves. It should be noted also that Cairn has sold its Indian subsidiary in mining giant Vedanta Resources, a group listed in London, controlled by billionaire Anil Agarwal of Indian origin.

Energy demand in Sri Lanka has risen sharply with the economic takeoff that followed the end of armed conflict in May 2009. If the current pace of its evolution continues, demand will double by 2018. It is in this context that the Government has already started negotiations with Russia to provide fuel and nuclear waste to Moscow. The country is also in contact with the International Atomic Energy Agency and countries with reactors for training and technical expertise.

Moreover, according to Sri Lanka, solar and wind powers are not suitable for consumption pattern in Sri Lanka. Country is indeed the point of electricity consumption at night, during which energies of this type are not available, but cannot be easily stored.