Sri Lanka Could Approve Four LNG Based Power Projects

Sri Lanka is expected to soon approve four LNG based power plants with combined capacity of 2,040 MW, according to local newspaper Business Times.

Country’s Board of Investment (BOI) is currently studying the projects. “They are British, Indian and two US companies,” an official told the newspaper adding that total investment could be about $3 billion.  

Energy World International Ltd, a British owned company based in Hong Kong, has applied to set up and operate LNG power plants with LNG terminal and storage tank.

India’s Shapoorji Pallonji has submitted a proposal to establish a power plant with 200 MW capacity near Colombo port.

Venture Global Power LLC, a US firm, has proposed to build offshore LNG terminal, storage, degasification terminal facility and a gas-fired combined cycle power plant (500 MW) and under water electrical transmission line and underwater natural gas pipeline at Kerawalapitiya with an investment of $795 million, the official told Business Times.

Sithe Global Power Ventures (SGPV), another US based firm, has proposed to develop an integrated LNG storage and regasification terminal together with a 500 MW natural gas fired combined cycle power generating station (expandable to 1,000 MW).

With environment in mind, Sri Lanka wants to move away from coal based power plants to LNG based ones. For the south Asian island nation sharp fall in LNG prices in last one year has made it attractive to pursue gas based power generation.

Recently, Colombo said it wants to source LNG from Qatar, world’s biggest exporter of the super chilled fuel.