ECONOMYNEXT – India’s Petronet has made a liquefied natural gas proposal to power around 600 MegaWatts of thermal plants in the country outside of a long term generation plan. Power and Energy Minister Kanchana Wijesekera has said.
“While a long term plan for LNG will be finalized, options for short term solution to reduce the cost of generation in the next 24 months from the 600+ MW of LNG power plants available will be pursued,” Minister Wijesekera said in a twitter.com message.
Sri Lanka’s power system has several combined cycle power plants which can potentially be operated with LNG with modifications.
There was no information on how the energy supply is to made. LNG prices soared in 2022 sharply pushing up costs in LNG to new heights. With US monetary tightening energy and other commodity prices are starting come down.
There were attempts in the past to peddle ‘take or pay’ LNG supply deals to state-run Ceylon Electricity Board, with a ‘free’ floating terminal, where the agency would be forced to buy fuel whether it wanted or not or pay compensation.