China, Japan and India have secured three mega power projects to be completed within the next two years to meet urgent electricity requirements, a senior official said. Power and Renewable Energy, Ministry Secretary, Suren Batagoda told the Sunday Times these three Liquefied Natural Gas (LNG) plants would generate a total of about 1,000 Megawatts (MW) [...]

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Big LNG projects secured by China, Japan and India

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China, Japan and India have secured three mega power projects to be completed within the next two years to meet urgent electricity requirements, a senior official said.

Power and Renewable Energy, Ministry Secretary, Suren Batagoda told the Sunday Times these three Liquefied Natural Gas (LNG) plants would generate a total of about 1,000 Megawatts (MW) to supplement the current daily output of about 2,500 MW.
Cabinet approval had been granted for the projects with the Chinese LNG project costing more than US $ 750 million due to begin in September this year in the Hambantota Industrial zone to generate more than 400 MW. The others projects will be constructed in Kerawalapitiya.

The China Machinery Engineering Corporation (CMEC), the company that built the coal-power plant in Norochcholai would construct the LNG plant in Hambantota and its main task would be to supply power to the proposed Industrial zone through the National grid, he said.

A joint venture will be formed for the construction of the project with the Chinese company having 70 per cent of shares and the remainder with Sri Lanka.

Ceylon Electricity Board (CEB) Chairman W.B.Ganegala told the Sunday Times, Sri Lanka hoped to negotiate for a loan from the Chinese investor or some other foreign loan.

He said Sri Lanka hoped to obtain power at a cost of Rs 12 this would be cheaper than the thermal power supplies.

The moves come amidst disputes between the CEB Engineers and the PUCSL whether Sri Lanka should go ahead with LNG projects or coal power projects. As a result implementation of power projects has been delayed by more than 18 months.

Earlier CEB engineers opposed the LNG project in Hambantota saying there is no provision in the country’s Long-Term Generation Expansion Plan (LTGEP) for an LNG plant in Hambantota.

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