New Fortress Energy and the Government of Sri Lanka finalise agreement
Published by Sarah Smith,
New Fortress Energy Inc. and The Government of the Democratic Socialist Republic of Sri Lanka (GOSL) jointly announced that they have executed a definitive agreement for New Fortress’ investment in West Coast Power Limited (WCP), the owner of the 310 MW Yugadanavi Power Plant based in Colombo, Sri Lanka, along with the rights to develop a new LNG terminal off the coast of Colombo. 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.
New Fortress will acquire a 40% ownership stake in WCP and plans to build an offshore LNG receiving, storage, and regasification terminal located off the coast of Colombo. New Fortress will initially provide the equivalent of an estimated 1.2 million gal. of LNG (approximately 35 000 million Btu/d) to the GOSL, with the expectation of significant growth as new power plants become operational.
The 310 MW Yugadanavi Power Plant currently has a long-term power purchase agreement to provide electricity to the national grid that extends through 2035. This power plant consists of General Electric turbines and is configured to run on natural gas in combined cycle.
“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. “We are pleased to partner with Sri Lanka by investing in modern energy infrastructure that will support sustainable economic development and environmental gains.”
The Kerawalapitya Power Complex is the foundation of the baseload power that serves the country’s population of 22 million people. Delivering cleaner and cheaper fuels to Sri Lanka will support the country’s growth for years to come.
The terminal is expected to begin operations in 2023.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/21092021/new-fortress-energy-and-the-government-of-sri-lanka-finalise-agreement/
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