ECONOMYNEXT- New Fortress Energy, a US-based company said it had joined Sri Lanka’s LTL group to build a 350 MegaWatt gas-fired power plant in Kerawalapitiya, north of Colombo, shortly after saying it had struck a deal with the government to build a floating liquefied natural gas terminal.
New Fortress said it had inked a Memorandum of Understanding (MOU) with Lakdhanavi Limited, a unit of Sri Lanka’s LTL group, to “jointly develop” a 350 MW power plant.
“This partnership builds on our efforts to accelerate Sri Lanka’s transition to cleaner, cheaper energy,” Wes Edens, Chairman and CEO of New Fortress Energy said in a statement.
“This development will further advance the introduction of natural gas and add additional modern power infrastructure.”
LTL had already won a 20-year power purchase agreement (PPA) from Sri Lanka for a 350 MW LNG-capable dual fuel plant.
“The MOU is non-binding on the parties, and actual terms of any future definitive agreements may differ from the terms of the MOU,” New Fortress Energy said.
New Fortress Energy said it had signed a “Framework Agreement with the Government of Sri Lanka to build an offshore liquefied natural gas (LNG) receiving, storage and re-gasification terminal located off the coast of Colombo” and “rights to supply gas” to an existing 300MW combined cycle plant.
There are no details on how the government will pay for the floating terminal. The firm did not elaborate on the price or duration of the ‘rights to supply gas’.
The existing ‘Yugadanavi’ plant is now supplied with furnace oil by state-run Ceylon Petroleum Corporation.
In an earlier statement New Fortress said it was in talks to buy a 40 percent stake in the existing plant. (Colombo/July15/2021)