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Sri Lanka turns to LNG to

alleviate energy woes

SRI LANKA WITH much of the island still reeling from its deal with New Fortress Energy in the US was
2022 oil supply woes, the government of Sri revealed.
Lanka has set its sights on relying on a pair of Minister Wijesekera went on to add that even
300-MW LNG power plants to solve its energy though there were “two proposals” and that in
issues – even though the country currently 2017 a three-way agreement with the govern-
has no terminal at which to offload incoming ments of India and Japan had been signed, “there
cargoes. is another agreement with a company called
As a result, the administration of Prime New Fortress Energy. So we are looking to see
Minister Dinesh Gunawardena in Colombo is what can be implemented most practically. Next
looking to India, Japan and also the US to offer steps will be taken accordingly.”
proposals to build a fully operational LNG ter- The involvement of New Fortress in Sri Lan-
minal, according to Power and Energy Minister kan LNG infrastructure is far from new, with the
Kanchana Wijesekera. firm declaring through CEO Wes Edens almost
In comments made by the minister, Sri Lanka a year ago that “NFE can now proceed with our
has already built one 300-MW LNG-powered plans to deliver cleaner fuels and more reliable,
plant called Yugadanavi. Located in Kerawalapi- affordable power to Sri Lanka.”
tiya, just north of the capital, the combined cycle Edens went on to add: “(We) look forward to
facility will for now operate as an independent partnering with the government of Sri Lanka by
power producer (IPP), with commercial opera- investing in modern energy infrastructure that
tions expected to start later in the year. paves the way for a sustainable and prosperous
Another facility to be called Sobadanavi is future for all Sri Lankans.”
now under construction in the same area, with Fast forward to early 2023, though, and little
authorities in Sri Lanka now saying that it will apparent progress has been made, although Jap-
initially be operated along the same IPP lines anese sources indicate a memorandum of under-
as Yugadanavi when it is added to the nation’s standing (MoU) has been put in place with the
energy mix in late 2023, or early 2024. Japanese government to facilitate construction
At present, though, Sri Lanka is devoid of of a terminal in Kerewalapitiya.
import capabilities, although Minister Wijese- No dates or specific details are yet available,
kera said in late December that his ministry will but the CEB is said to be actively working to pur-
“execute a plan in January for infrastructure and chase land in the area to host the site.
supply of LNG.” In a similar vein the CEB has initiated talks
In making the statement, though, no con- with India’s National Thermal Power Corp.
crete details on contracts having been made with (NTPC), with discussions ongoing; an issue
Indian or Japanese authorities were offered. Minister Wijesekera alluded to when asked, say-
It is understood that the Ceylon Electricity ing: “I think those companies are talking among
Board, Sri Lanka’s government-owned utility, themselves to operate jointly, as far as I know. We
has previously posted a tender looking for an off- will have to do this with all the companies after
shore floating storage regasification unit (FSRU). all those discussions are over.”
Politics intervened, however, with the minis- “There is no firm decision yet. When there is
ter offering only a vague “the tender for the ter- a firm decision we will inform you,” he said.™
minal had not been given”, after a controversial

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