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    Sri Lanka Floats Tender for FSRU

Summary

The state-run Ceylon Electricity Board intends to award the contract by the end of this year.

by: Shardul Sharma

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Sri Lanka Floats Tender for FSRU

Sri Lankan state-owned Ceylon Electricity Board (CEB) has invited bids for a floating storage and regasification unit (FSRU) to be deployed at Kerawalapitiya, according to a document published on its website.  

The FSRU is expected to have a regasification capacity of 380mn ft3/day and an LNG storage capacity of minimum 156,000 m3. It will be leased on a build, own and operate (Boo) basis while the compatible mooring system will be on a build, own, operate and transfer (Boot) basis, the bid document said. The FSRU will supply regasified LNG for the power plants located in Kerawalapitiya and Colombo area. 

The pipeline end manifold, subsea pipeline and onshore pipeline up to the boundaries of the power plants will be established by Ceylon Petroleum Corporation on Boot basis. 

The successful bidder will be required to design, finance, procure, construct, deliver, commission, operate and maintain the FSRU. It will also need to design, finance, procure, construct, deliver, erect, commission, operate and maintain the mooring system and transfer to CEB at the end of the 10-year term.  

The successful bidder will also be required to enter into floating storage and regasification unit & mooring agreement with CEB and the implementation agreement with the government of Sri Lanka for the establishment of the required infrastructure.  

The last date for putting in bids is June 18 and bidders will have to provide a $2.5mn proposal security. The CEB intends to award the contract by the end of this year.  

CBE said it considered several alternatives, including land-based and floating regasification systems in multiple locations around Sri Lanka, however, its steering committee, on the basis of data gathered and recommendations from advisors, concluded that an FSRU off Kerawalapitiya would serve the requirement.  

The Public Utilities Commission of Sri Lanka last month approved the signing of a power purchase agreement for the 300-MW gas-fired Kerawalapitiya power plant, near Colombo. The agreement will be signed by the CEB and private firm Lakdhanavi. Initially, the plant will run on diesel until supplies of LNG can be obtained.  

With the environment in mind, Sri Lanka is looking to promote greater use of natural gas, while moving away from coal and oil-based power generation.