Sri Lanka's first LNG power plant could be finalized in next six months: Minister
Aug 03, 2016 11:24 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka may see the first liquefied natural gas (LNG) power plant finalized in the next few months as a public-private partnership, Deputy Minister of State Enterprises Minister Eran Wickremaratne said.
He told a business forum organized by Sri Lanka's Ceylon Chamber of Commerce that an expressway to the centre of the country could be structured as a public-private partnership.
Older expressways could also have private partnerships for maintenance and operation, Deputy Minister Wickremeratne said.
Several private business interests have been pushing to set up LNG generators as independent power producers (IPPs) outside the long-term generation plan developed by the Ceylon Electricity Board, following the apparent scuttling of a planned coal plant in Trincomalee that is cheaper.
Engineers of the utility have complained that ad hoc and more costly plants had been pushed into the CEB in the past by cabinet decision after delaying coal plants.
At the moment, LNG prices are unusually low. LNG, however, is cleaner than coal.
Reports said China had proposed a LNG power plant near the Southern Hambantota port.
Sri Lanka's Sunday Times newspaper citing an unnamed source at the state investment promotion office said that four projects worth $3.0 billion involving 2,050 MegaWatts had applied to set up in Sri Lanka.
Energy World International Ltd, a British-owned company based in Hong Kong, had applied to set up a terminal in Kerawalapitiya and operate LNG plants of 50MW in the Katunayake Export Processing Zone, 50MW in Biyagama and 40MW in Seethawaka.
Venture Global Power LLC, a US firm, proposed an offshore LNG terminal, storage, degasification terminal facility and a 500 MW gas-fired combined cycle power plant and under water electrical transmission line and underwater natural gas pipeline at Kerawalapitiya with an investment of $795 million.
Shapoorji Pallonji, an Indian firm, has proposed a half a million tonnes per annum storage and regasification terminal and 200MW power plants near Colombo Port.
Sithe Global Power Ventures (SGPV), a wholly owned subsidiary of Sithe Global Power LLC of the US, had proposed an LNG storage and regasification terminal and 500MW combined cycle power plant expandable to 1,000 MW. (Colombo/Aug03/2016)