Liquid Natural Gas (LNG) Development

Liquid Natural Gas (LNG) Development

1. First 300 MW Liquefied Natural Gas (LNG) Power Plant – Kerawalapitiya

The first LNG fired Combined Cycle Power Plant with 300 MW capacity will be implemented in Kerawalapitiya. This plant will function as an Independent Power Producer (IPP). Cabinet approval was received to award the Tender to the Lakdanavi Company and construction works are expected to commence on 5 March 2021. It is expected to commence commercial operations in 2023.

2.  Second 300 MW Liquefied Natural Gas (LNG) Power Plant in Kerawalapitiya.

This power plant is also expected to be constructed in Kerawalapitiya. It is expected to go for the open competitive bidding process for the selection of a suitable contractor to implement the project as IPP and BOOT model in 2021.  It is expected to commission the project in 2024

3   LNG Supply and Infrastructure

For the supply of LNG to the proposed power plants, the following projects have to be completed.

-           Deployment of floating Storage Regasification (FSRU) and mooring system at Kerawalapitiya. As a Built Own Operate (BOO) basis by CEB. RFP documents are prepared by CEB with the assistance of the consultants appointed by Asian Development Banks. (ADB) and RFP documents are being reviewed by the Project Committee.

-           Construction of Gas Pipeline from FSRU to the power plants.  Responsibility for the construction of the Gas pipeline is on the Ceylon Petroleum Corporation (CPC).

-           LNG supply – the CEB will be given a special licence by the Minister of Energy for 5 years for the supply of LNG for the power plants

The commercial operations of the above project are expected to commence in 2024.

4.  LNG Power Plant in Kerewalapitiya with the Government of Japan

Cabinet approval has been obtained and signed the Cooperation and Memorandum of Understanding with the Government of Japan to implement this project. 100 hectares of land in Kerewalapitiya area has been identified for this project. Activities are being carried out to acquire the land for CEB on a long term lease basis.

5.  LNG Power Plant in Kerewalapitiya with Indian Investment

CEB has commenced discussions with National Thermal Power Corporation Limited, India (NTPC).

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