Gaining Steam

Shell Global, pitching for Liquefied Natural Gas (LNG) for Sri Lanka’s long-term fuel needs, met with local officials and a vocal coal lobby while in Colombo last week. Shell Global, pitching for Liquefied Natural Gas (LNG) for Sri Lanka’s long-term fuel needs, met with local officials and a vocal coal lobby while in Colombo last week.

Re-opening an old debate, the team has been promoting the cleaner fuel that could see savings of about US$ 100 mn a year over costly diesels, based on early feasibility studies.

The proposed project mixes new capacity with conversion of base load combined cycle plants to run on gas, also freeing up the pressure on existing hydro reserves.

But a minimum of 1500 MW is needed for tariffs to fall to levels comparable to that of coal, with options of converting 720 MW at Kelanitissa and Kerawalapitiya to LNG.

“We are exploring it for development in parallel or as a fall back to coal, not instead of it,” Business Development Manager at Shell Global Solutions, Rupert Taylor told LBO.

The team met with the government’s National Energy council and the Ceylon Electricity Board while in Colombo to discuss how it might fall int