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Wednesday October 20th, 2021
Energy

US based New Fortress Energy says strikes LNG supply deal with Sri Lanka

ECONOMYNEXT – US-based New Fortress Energy Inc., said it had struck a deal with the Government of Sri Lanka to supply 1.2 million gallons of liquefied natural gas to supply a plant it is planning to buy a stake in and others.

In a statement dated September 21, New Fortress said they had executed a ‘definitive agreement’ to invest in West Coast Power Ltd, a firm in which the government has a stake but operations and maintenance is done by a private company.

“As part of the transaction, New Fortress will have gas supply rights to the Kerawalapitya Power Complex, where 310 MW of power is operational today and an additional 700 MW scheduled to be built, of which 350 MW is scheduled to be operational by 2023,” the firm said.

“New Fortress will initially provide the equivalent of an estimated 1.2 million gallons of LNG (~35,000 MMBtu) per day to the GOSL, with the expectation of significant growth as new power plants become operational.”

New Fortress will buy 40 percent ownership stake in the West Coast Power plant and plans to build an offshore liquified natural gas (LNG) receiving, storage and regasification terminal.

“This is a significant milestone for Sri Lanka’s transition to cleaner fuels and more reliable, affordable power,” said Wes Edens, Chairman and CEO of New Fortress Energy was quoted as saying in the statement.

There have been objections to committing the state-run Ceylon Electricity Board to force purchase LNG through ‘take-or-pay’ deals as the agency had itself floated a tender to build a terminal and procure fuel separately through competitive tender. (Colombo/Sept23/2021)

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