By: Staff Writer
August 22, Colombo (LNW): LTL Holdings Ltd. from Sri Lanka and India’s Petronet LNG Ltd. have signed a Memorandum of Understanding (MoU) to collaborate on developing infrastructure for storing, regasifying, and supplying Liquefied Natural Gas (LNG) to the ‘Sobadhanavi’ Combined Cycle Power Plant in Kerawalapitiya.
This partnership marks a key advancement in modernizing Sri Lanka’s energy sector and reducing its dependency on traditional fuel sources.
The MoU was signed by LTL Holdings CEO Nuhuman Marikkar and Petronet LNG’s CEO and Managing Director Akshay Kumar Singh.
Power and Energy Minister Kanchana Wijesekera emphasized that this initiative aligns with President Ranil Wickremesinghe’s broader energy strategy, aimed at ensuring a continuous, cost-effective electricity supply across Sri Lanka.
Minister Wijesekera highlighted that the Sobadhanavi plant, operated by Lakdhanavi Ltd., will significantly enhance Sri Lanka’s energy capacity, with its first phase expected to be operational by August 2024 and the second phase in early 2025.
Initially, LNG will be imported from Petronet’s terminal in Kochi, India, transported to the Kerawalapitiya storage and regasification terminal using cryogenic ISO containers.
Addressing recent challenges in the energy sector, including tough decisions like tariff hikes, Wijesekera noted that these steps have enabled the Ceylon Electricity Board (CEB) to become financially stable and debt-free, attracting new investments.
The government aims to reduce electricity costs by 40-50%, eventually passing these savings onto consumers, though the task remains challenging.
Wijesekera also mentioned plans for the Sobadhanavi and Yugadhanavi power plants to commence operations by early 2026, with the Sobadhanavi plant expected to be operational by August 28. Initially, these plants will operate on diesel and fuel oil before transitioning to LNG, contributing to lower energy costs and reduced environmental impact.
The government’s policy aims to phase out diesel, crude oil, and naphtha, targeting 70% of electricity needs to be met through renewable energy and the remaining 30% through LNG.
Minister Wijesekera reflected on the difficult decisions made during the economic crisis, which prioritized consistent power supply over price stability. These decisions enabled the government to repay significant debts and settle outstanding payments to suppliers, positioning the country for future energy agreements and investments.
Deputy High Commissioner of India to Sri Lanka, Dr. Satyanjal Pandey, emphasized that a reliable, clean, and sustainable energy supply is crucial for economic growth and improving citizens’ quality of life.
He noted that the ongoing collaboration between Sri Lanka and India focuses on boosting energy security and reducing costs, with the potential to connect Sri Lanka to regional and global grids.
This could attract investments, unlock green energy potential, and position Sri Lanka as a significant energy exporter.
Dr. Pandey also mentioned advanced discussions on power grid connectivity, infrastructure projects, and renewable energy initiatives, such as a solar project in Sampoor, underscoring the commitment of both governments to these shared goals.
