Terminate LNG deal with New Fortress, JVP tells Govt

Terminate LNG deal with New Fortress, JVP tells Govt

Written by Zulfick Farzan

23 Sep, 2021 | 4:34 pm

COLOMBO (News 1st); The JVP has alleged that the controversial midnight deal for the Kerawalapitiya Power Plant grants permission for the US firm to switch ON / OFF electricity to Sri Lanka.

JVP’s Vijitha Herath said that signing the deal compromised Sri Lanka’s National Security and should be seen as a measure taken by the state against its own people.

He called on the government to immediately terminate the agreement and respect the rights of the people.

On Wednesday (22) New Fortress Energy Inc. announced that they have executed a definitive agreement for New Fortress’ investment in West Coast Power Limited (“WCP”), the owner of the 310 MW Yugadanavi Power Plant based in Colombo, along with the rights to develop a new LNG Terminal off the coast of Colombo, the capital city.

As part of the transaction, New Fortress will have gas supply rights to the Kerawalapitya Power Complex, where 310 MW of power is operational today and an additional 700 MW scheduled to be built, of which 350 MW is scheduled to be operational by 2023.

New Fortress will acquire a 40% ownership stake in WCP and plans to build an offshore liquified natural gas (LNG) receiving, storage, and regasification terminal located off the coast of Colombo.

New Fortress will initially provide the equivalent of an estimated 1.2 million gallons of LNG (~35,000 MMBtu) per day to the GOSL, with the expectation of significant growth as new power plants become operational.

The 310 MW Yugadanavi Power Plant currently has a long-term power purchase agreement to provide electricity to the national grid that extends through 2035.

JVP Leader Anura Kumara has alleged that the government has signed a midnight agreement with a US firm for electricity generation and the supply of liquefied natural gas (LNG).

In early July 2021, New Fortress Energy Inc. announced that it has signed a Framework Agreement with the Government of Sri Lanka to construct a new offshore liquefied natural gas (LNG) receiving, storage, and regasification terminal.

The Terminal will be located off the coast of Colombo to supply gas to the country’s power plants, primarily located in the Kerawalapitiya Power Complex.

The Kerawalapitiya Power Complex consists of 300 MW in operation today and is ultimately expected to grow to over 1,000 MW by 2025.

As part of the Agreement, New Fortress will supply natural gas to the existing 300 MW Yugadanavi Power Plant and is negotiating the purchase of the Government’s 40% stake in the company that owns the power plant.

This power plant is currently under a long-term power purchase agreement (PPA) to provide electricity to the national grid that extends through 2035. The plant consists of General Electric turbines and was configured to run on natural gas in a combined cycle.

JVP Leader Anura Kumara Dissanayake alleged the agreement was signed in a backdrop where the cabinet paper for this project, was not seen by any cabinet minister, though it was approved.

‘The agreement was signed at 12:06 AM on Saturday (18). Thereafter the President flew off to the US,” said Dissanayake.

The JVP leader warned that whoever controls Sri Lanka’s energy sector will decide Sri Lanka’s Government.

He said the JVP will seek relief from the court against these attempts.

Latest News

Are you interested in advertising on our website or video channel
Please contact us at [email protected]