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    Sri Lanka finalises LNG agreement


The government reached a firm agreement for the regasification terminal with US-based New Fortress Energy.

by: Daniel Graeber

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Sri Lanka finalises LNG agreement

US-based New Fortress Energy said September 21 it had finalised an agreement with the government of Sri Lanka to build an offshore regasification facility for LNG imports.

For undisclosed terms, New Fortress is to acquire a 40% stake in utility West Coast Power, which owns a 310 MW power plant in Colombo, the Sri Lankan capital. The US company also secured the rights to develop an LNG receiving, storage and regasification terminal off the coast of the capital. The terminal could be in service as early as 2023.

“This is a significant milestone for Sri Lanka’s transition to cleaner fuels and more reliable, affordable power,” CEO Wes Edens said.

A memorandum of understanding was reached in July between New Energy and Sri Lanka.