New Fortress Energy inks MoU on gas power in Sri Lanka
US-based gas company New Fortress Energy said July 13 it had signed a preliminary agreement to build a new gas-fired power plant in Sri Lanka.
The company signed a memorandum of understanding with Sri Lanka’s Lakdhanavi Limited to jointly develop a 350 MW gas-fired power plant at a complex in Colombo, the nation’s commercial capital and most populous city.
“This partnership builds on our efforts to accelerate Sri Lanka’s transition to cleaner, cheaper energy,” New Fortress CEO Wes Edens said.
The announcement followed the July 8 signing of an agreement with the government of Sri Lanka to construct an offshore LNG import and regasification terminal off the coast of Colombo.
The terminal will supply regasified LNG to the Kerawalapitiya power complex, the same site as the proposed gas-fired plant.
As part of the agreement, New Fortress will supply natural gas to the existing 300 MW Yugadanavi power plant and is negotiating the purchase of the government’s 40% stake in the company that owns the power plant.
This power plant is currently under a long-term power purchase agreement (PPA) to provide electricity to the national grid that extends through 2035.
The plant consists of General Electric turbines and was configured to run on natural gas.