All info regarding LNG plant agreement in House next week

On Sep 28, 2021

All information with regard to the Framework Agreement to construct a new offshore liquefied natural gas (LNG) receiving, storage, and regasification terminal will be informed to Parliament next week by the Finance and Energy Ministers, Cabinet Spokesman and Mass Media Minister Dullas Alahapperuma.

He was responding to a question by a journalist at the weekly Cabinet media briefing held at the Government Information Department yesterday.

The Minister said that his personal view on this matter is that the supply of LNG should not be controlled by a foreign entity, adding that when he was the Energy Minister it was planned to call for tenders for the LNG plant. The Minister further said that the government has not taken any decision to sell off national resources.

Minister Alahapperuma said that the Party leaders of the SLPP coalition are also planning on meeting the President to discuss this matter.

New Fortress Energy Inc. recently 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.