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AsianOil PIPELINES & TRANSPORT AsianOil

Sri Lanka turns to LNG to

alleviate energy woes

SRI LANKA WITH much of the island still reeling from its terminal had not been given”, after a controver-
2022 oil supply woes, the government of Sri sial deal with New Fortress Energy in the US was
Sri Lanka is bringing Lanka has set its sights on relying on a pair of revealed.
more gas into the 300-MW LNG power plants to solve its energy Minister Wijesekera went on to add that even
mix, after coping with issues – even though the country currently though there were “two proposals” and that in
difficulties with energy has no terminal at which to offload incoming 2017 a three-way agreement with the govern-
supply over the past cargoes. ments of India and Japan had been signed, “there
year. As a result, the administration of Prime is another agreement with a company called
Minister Dinesh Gunawardena in Colombo is New Fortress Energy. So we are looking to see
looking to India, Japan and also the US to offer what can be implemented most practically. Next
proposals to build a fully operational LNG ter- steps will be taken accordingly.”
minal, according to Power and Energy Minister The involvement of New Fortress in Sri Lan-
Kanchana Wijesekera. kan LNG infrastructure is far from new, with the
In comments made by the minister, firm declaring through CEO Wes Edens almost
Sri Lanka has already built one 300-MW a year ago that “NFE can now proceed with our
LNG-powered plant called Yugadanavi. plans to deliver cleaner fuels and more reliable,
Located in Kerawalapitiya, just north of the affordable power to Sri Lanka.”
capital, the combined cycle facility will for now Edens went on to add: “(We) look forward to
operate as an independent power producer partnering with the government of Sri Lanka by
(IPP), with commercial operations expected investing in modern energy infrastructure that
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 min- “There is no firm decision yet. When there is
ister offering only a vague “the tender for the a firm decision we will inform you,” he said. ™

P6 www. NEWSBASE .com Week 01 06•January•2023