Construction work on the country’s first LNG power plant to begin next month

By Ifham Nizam

Newly appointed Board of the Public Utilities Commission has endorsed the long delayed final Power Purchase Agreement (PPA) between the Electricity Board and Lakdhanavi Ltd, and the construction of the first 300 MW Liquefied Natural Gas (LNG) power plant at Kerawalapitiya would begin in the first week of March, CEB Vice Chairman Nalinda Illangakoon told The Island yesterday.

Thereafter, tenders for the second LNG plant would be called shortly for a Ceylon Petroleum Corporation pipeline to the project site, Illangakoon added.

The latest PPA was endorsed by PUCSL newly appointed Board Members comprising Chairman Janaka Ratnayake, Chathurika Wijesinghe, Mohan Samaranayake, Udeni Wickramasinghe and Professor Janaka Ekanayake.

The project is based on a proposal by Power and Energy Minister Dullas Alahapperuma; it has been approved by the Cabinet of Ministers.

“The Power and Energy Ministry aims to empower the country with effective, environment-friendly and cost-effective power generation in line with the president’s vision of prosperity,” Alahapperuma said.

The government’s National Policy Framework aims to convert all fuel-powered plants in the Colombo area into natural gas turbine plants.

Prime Minister Mahinda Rajapaksa will inaugurate the first 300MW combined-cycle dual fuel Liquefied Natural Gas (LNG) power plant at Kerawalapitiya, soon.

The Plant was to be opened in January; the opening was delayed due to the resignation of senior officials at the PUCSL.

Illangakoon stressed that the Cabinet had taken the right decision and there was no need for the Attorney General’s approval for the upcoming LNG plant.

Cabinet authorised the CEB to sign up for a LNG/diesel-fired power plant without reference to the Attorney General.

A top official of the CEB told The Island that the letter of intent (LoI) had been signed with Lakdhanavi Ltd for the 300MW combined-cycle dual fuel LNG power plant at Kerawalapitiya.

He said that PM Rajapaksa had, in his capacity as the finance minister, presented a new note to Cabinet recently enabling the CEB to enter into an agreement to build a LNG/diesel-fired power plant.