LNG deal: Power players unmasked

COLOMBO (News 1st); The LNG Power plant deal with the US Company New Fortress Energy Inc. has been causing controversy across the past few months in Sri Lanka with allegations being hurled not only between parties, but within parties ever since it was signed on 19th September.

What is the New Fortress deal?

The deal is one which highlights the sale of 40% of the 300 megawatt power plant in Kerawalapitiya to a US company called New Ports Energy for US $ 250 million.

On September 17, 2021, a document entitled 'Agreement on Sale and Purchase of 40%' was signed by the Secretary to the Ministry of Finance, S.R. Attygalle and N.S. Daniel Christopher Knight, Managing Director of the company 'NFE Sri Lanka Power Holdings'.

Opposition political parties have repeatedly called for the agreement to be tabled in Parliament, however it had not been tabled at the Parliament so far.

The Janatha Vimukthi Peramuna Leader Anura Kumara Dissanayake took steps to table the agreement at the Parliament recently.

However, Minister Wimal Weerawansa on Saturday (11) said that the agreement has already been submitted to the Cabinet about two weeks ago, when the Cabinet discussed the agreement and the discussions are still continuing, therefore it is not strange that the agreement got into the hands of Dissanayake.

Yet, concerns have been raised over the agreement, as another company is cited in the agreement instead of New Fortress Energy Inc.

In response to this, Minister Wimal Weerawansa, stated that he had raised such issues in the Cabinet, and the issue has been given to the Cabinet in writing. He also added that the discussion on the deal is not over as of yet.

Meanwhile, Chief Government Whip Johnston Fernando said that there is no need to read all the clauses of the agreement, as it can be trusted after being passed by the Cabinet.

The Chief Government Whip, Johnston Fernando stated on Friday (10) that it is an agreement which is approved by the Cabinet, therefore there is no need for Cabinet Ministers themselves go and find out exactly what is in the agreement. 

" That is trust. I do not think there is a problem in the agreement if the Attorney General's Department went and approved it when the Cabinet handed it over to the Secretary to the Treasury." the Chief Government Whip stated.

However, the Electrical Engineers Association recently revealed that this agreement was signed without the knowledge of even the Cabinet.

The Chairman of the Ceylon Electricity Board Engineers Association, Saumya Kumarawadu said that in the Cabinet memoir which he saw, there was an agreement which was completely different from the one which he has read.

Is there a separate agreement?

According to the agreement signed by the Secretary to the Ministry of Finance on behalf of the Government of Sri Lanka, and the Managing Director of NFE Sri Lanka Power Holdings, Daniel Christopher Knight, the sale will not be limited to simply 40% stake in the company which owns the Yugadanavi Power Plant.

According to the agreement, the company has agreed to build and supply a liquefied natural gas (LNG) terminal, a major source of energy for the future.

According to Kumarawadu, the Sri Lankan Government has to agree to form a LNG gas company, which should be signed over to New Fortress Energy Inc, and subsequently, the remaining $ 63 million will be given.

Which company signed this agreement?

According to the agreement, the registered address of NFE Sri Lanka Power Holdings LLC  is 1206 N Orange Street , Wilmington DE. 

According to certain documents published by New Fortress Energy Inc. , NFE Power Holdings is a subsidiary of New Fortress Energy Inc.

Then, a question arises as to who the real shareholders of NFE Sri Lanka Power Holdings LLC are, and as to who is behind this move to embark on a multi-billion dollar LNG market monopoly on the pretext of investing 40% in a power plant.

Additionally, the former Minister of Energy, Chandima Weerakkody speaking on the issue stated that this move is a betrayal of the nation.

" I have to say responsibly that if this decision was taken in the Cabinet, everyone in that Cabinet would be guilty of betraying the future of this country, including future generations. No one has the right to deceive the people and hand over power and energy of the nation, which belongs to the people in this manner. The President should immediately conduct an inquiry into this. We clearly state that if a person has committed a crime, he should be punished in the name of the nation without discrimination," he added.