STO to Develop 1,500-Tonne Gas Storage Facility in Malé Area

Minister of Finance and Development Planning Moosa Zameer said today that work is underway to develop an additional 1,500-tonne gas storage facility in the Malé area, with the State Trading Organisation (STO) currently carrying out the project.

At a press conference held in the President’s Office, the minister said the government is continuing efforts to ensure a steady supply of fuel and gas to the Maldives, despite rising global prices linked to the ongoing conflict in the Middle East. He noted that increased domestic demand has at times led to temporary sales limits by STO’s subsidiary, Maldives Gas, although normal supply resumes once stocks are replenished.

Zameer said there are no current difficulties in sourcing gas for the Maldives, adding that the country receives supplies from the same provider serving Sri Lanka and Bangladesh. He explained that gas is transported via small vessels and discharged within Maldivian territorial waters, with operations sometimes affected by weather conditions.

Highlighting measures to address supply pressures, the minister said STO is working to expand storage capacity. 

“STO has now informed me that an additional 1,500-tonne storage is to be developed in the Malé area. STO says that the project will be completed by the end of this year. At that point, we will be able to maintain a two-and-a-half-month stock in the Malé area,” he said.

Currently, STO operates a 1,000-tonne gas storage facility in the Malé area, while private sector storage maintained by Villa also contributes to meeting demand. Zameer said both providers are managing current supply needs.

Last week, Maldives Gas temporarily limited sales following a surge in demand, offering 5kg cylinders at discounted rates instead of the standard 10kg cylinders. STO said normal distribution has since resumed following the arrival of a new shipment this week.