Iran to conduct feasibility study on LNG fired power plant in Mirissa

Wasantha RAMANAYAKE

COLOMBO: A Government owned Iranian company has agreed to conduct a feasibility study on the first ever Liquid Natural Gas (LNG) fired power plant to be constructed in Mirissa, Power and Energy Ministry sources said.

A group of delegation consisting of the Iranian Ambassador in Colombo Benham Beroos and Vice Chairman Khalil Behbahani of the state owned MAPNA company following discussions with Power and Energy Minister W. D. J. Seneviratne agreed to conduct the feasibility study.

After the conclusion of the feasibility study which could take three months, the plant's construction was expected to be started by the end of the year, the sources added.

Seneviratne said both Governments would reach an agreement for the supply of LNG for a 20-year period.

According to Ministry sources Iran boasts of the latest in LNG technology which is only second to Russia. The deal to provide the technology was based on the mutual friendship of the two countries.

The Minister expressed confidence that the construction of the jetty and related infrastructure for LNG operations would create around 1,000 direct employments.

Although the initial investment and the transportation cost of the LNG would be relatively higher, it was considered to be a cheaper source of power with minimal environmental damage.

LNG is a naturally occurring gas that should be cooled and pressurised to liquify before transportation that makes it costly. Liquid Petroleum Gas (LPG) is the cleaner form of gas and a by-product of the refining of the crude oil.

Ministry Secretary M. M. C. Ferdinando, General Manager D. R. Pulleperuma, Additional Secretary Tissa Herath and Media Secretary Harsha B. Abeykoon also participated.