First ever LNG power plant inaugurated
Liquefied Natural Gas (LNG) is one of the few cheaper power sources
available for the country, said Power and Energy Minister W.D.J.
Seneviratne inaugurating the country's first ever LNG fired power plant
in Kerawalapitiya yesterday.
Minister Seneviratne said that Lanka Aloka Ltd. agreed to supply
electricity to the CEB at cheaper rates than most of the independent
power suppliers. Minister Seneviratne cutting the first sod of soil at
the site closer to the Kerewalapitiya Yugadhanavi thermal power plant,
inaugurated the construction.
"The company had agreed to supply the power to the Ceylon Electricity
Board at a lower rate, the Minister said. The Minister added that the
country needed to explore more cheaper sources of power since there were
not new exploitable hydro power sources available in the country. "The
country had utilized almost all the water resources feasible for power
Chief Incumbent of Attanagalle Rajamaha Viharaya Ven. Dr. Pannila
Ananda Thera who had been instrumental in bringing down the project to
Sri Lnaka, noted that two former heads of State had lethargic attitudes
towards the implementation of the project. "The Australian company
offered very competitive rates but the previous governments were not
interested and turned down the direct investment opportunity," the Thera
Director Lanka Aloka Ltd. H.M. Navaratne said the project is expected
to complete within 18 months. He said once the project is completed it
would provide power to the CEB at the lowest rates. He added that the
power plant would consist of a special storage facility to keep the gas
at its liquid form in the below zero temperatures at -160 Celsius. He
said that it also included a re-gasification unit.
According to the Media release by the Arc Development, the Australian
project developer, also the arranger of the foreign direct investment
and the project financing, stated that the first phase of the project
with 500 MW would add 20 percent of additional capacity to the country's
current generation capacity. The first phase would be completed at a
cost of US $ 600 million.
The release stated that the power plant would be developed as a Clean
Development Mechanism (CDM) project due to its low impact on
environment. It further stated that that the project had been achieved
its initial in-country approval and had been listed with the United
Nations Framework Conventions on Climate Change (UNFCCC).
Information and Media Minister Anura Priyadarshana Yapa also