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Sri Lanka evaluating floating LNG terminal: minister
13 Sep, 2012 08:23:41
Sept 13, 2012 (LBO) - Sri Lanka is evaluating a proposal to build a floating liquefied natural gas terminal to supply over 1,000MegaWatts of combined cycle power plants that are running on furnace oil and a planned new one, minister Champika Ranawaka said.
"We are now working to introduce LNG to the country," he said. "We think by 2014 we will be able to do it."

He said the floating terminal to be located in Kerawalapitiya, north of Colombo has been proposed by Lanka Transformer Ltd, an associate company of state-run Ceylon Electricity Board, which is partly owned by private investors.

Several feasibility studies have found that the cost of the terminal makes LNG uneconomical and the fuel is not included in the grid operator's long term generation plan.

However a more recent feasibility study has found that LNG could be justified under certain conditions, industry analysts say.

A floating storage and regassification unit (FSRU) costs less than a land based terminal. Minister Ranawaka declined to reveal the estimated cost of the terminal saying LTL's financial proposal was still being evaluated.

LNG is also cleaner than heavy fuel or diesel.

Minister Ranawaka said an existing 300MegaWatt heavy fuel plant built by the LTL group in Kerawalapitiya as well as 700 MWs of of furnace oil fired plants owned by the CEB, located it its Kelanitissa complex could be converted to run on LNG.

Another 300MW power plant was also planned in Kerawalapitiya, he said.

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4. Niro Nov 20
@2,Rohan Samarajiva
The LNG power plant should be close to the areas with the maximum power consumption/demand. SO it makes sense to build it close to the western province.

Transmission losses will be substantial if it is located in Hambanthota or Trinco.

BTW: How does a floating power plant take advantage of transport infrastructure?

3. Nov 18
Fully support for introduce cleaner LNG fuel, fantastic decision by power & energy minister but two things wants to clarify, firstly landing cost of one ton of LNG or 1 MBtu. I presume we purchase from direct manufacturer.
2. Rohan Samarajiva Sep 15
Why not Hambantota or even Trinco?
The low density of population of population and the enormous investment in transport infrastructure makes Hambantota an even stronger location than the natural, which is Trinco.
1. Nishshanka Sep 15
It is good to here at least Champika is serious about danger of having Coal powered power olants and switching over to LNG which is the cleanest fuel available. Why CPC is not making arrangements to deliver LNG to all Sri Lankans for Domestic use, Industrial use and as an clean Auto Gas