Sri Lanka Approves Gas-Fired Power Plant

Sri Lanka's cabinet September 18 approved construction of a 500 MW gas-based power plant at Kerapalapitiya, near the national capital Colombo, on the country's western coast, the government said September 20.

The Sri Lankan cabinet approved the proposal presented by country’s power and renewable minister Ranjith Siyambalapitiya to enter into a joint projects and shareholders agreement between Lanka Electricity Board and Indian state-owned energy firm National Thermal Power Corporation with respect to the power plant.

With the environment in mind, Sri Lanka is looking to promote greater use of natural gas. The government wants to move away from coal-based power plants to gas-based ones. The government has been in talks with India and Japan to set up LNG infrastructure in the country so that gas-based power plants run smoothly. Earlier this year, the Sri Lankan government said India's Petronet LNG would partner with Japan's Mitsubishi and Sojitz Corporation to set up Sri Lanka's first LNG terminal near Colombo. The government issued a letter of intent with the Indian government regarding the plan during the visit of Indian foreign minister Sushma Swaraj to Colombo September 1, 2017.

Sri Lanka will have 15% of the proposed joint venture through Sri Lanka Gas Terminal; Petronet LNG will have 47.5%; and Sojitz Corporation and Mitsubishi, the remaining 37.5%.