New Fortress to initiate Sri Lanka LNG-to-power scheme
New Fortress Energy said on March 8 it was ready to proceed with plans for a new LNG terminal off the coast of Colombo in Sri Lanka after a legal challenge against the project failed.
Sri Lanka executed a definitive agreement with New Fortress in September 2021 to build a 1.2mn gallons/day LNG terminal. Liquefied imports from the terminal will be regasified to supply the 310 MW Yugadnavi power station and the forthcoming 350MW Sobadanavi facility, which will begin operations in 2023.
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The government has sold New Fortress a 40% stake in the Kerawalapitya power complex, the site containing both Yugadnavi and Sobadanavi power units, but was challenged by a fundamental rights petition that claimed it failed to follow due process. Two former cabinet ministers had backed the petition.
The supreme court verdict was welcomed by New Fortress CEO and chairman Wes Edens, who said the company now had the opportunity to develop modern energy infrastructure for Sri Lanka.
"We are pleased that the court has dismissed these petitions, as New Fortress can now proceed with our plans to deliver cleaner fuels and more reliable, affordable power to Sri Lanka," Edens said.
New Fortress reported a $92mn net income for 2021 including a record quarterly net income of $151mn. It marked the reversal of net losses in the previous two years, of $264mn in 2020 and $204mn in 2019.
In Africa, New Fortress has been advancing its Fast LNG project off the coast of the Republic of Congo, expected to produce up to 1.4mn mt/yr of LNG. The company also signed a preliminary agreement with Mauritania's government to deliver a natural gas, LNG and blue ammonia hub.