LNG supply should not be controlled by foreign firm – Dullas

LNG supply should not be controlled by foreign firm – Dullas

LNG supply should not be controlled by foreign firm – Dullas

Written by Zulfick Farzan

28 Sep, 2021 | 1:05 pm

COLOMBO (News 1st); Sri Lanka’s Media Minister Dullas Alahapperuma said his personal opinion with respect to the country’s energy sector remains that the supply of LNG should not be controlled by a foreign entity.

“When I was energy minister it was decided to call for tenders for the LNG plant,” said the Minister.

The Finance Ministry and the Energy Minister would inform Parliament next week on all proceedings with regard to the Yugadanavi Power Plan deal, said Minister Alahapperuma.

“The government has not taken any decision to sell off national assets and resources,” he added.

Leaders of the coalition are planning on meeting with the President to raise their concerns over the Yugadanavi Power Plant deal which was led to controversy. They recently held meetings on the matter with the Ex-President and the Prime Minister as well.

On the 22nd of September 202 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.

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