Energy Minister Kanchana Wijesekera revealed that Sri Lanka has engaged in discussions with India's Petronet LNG to provide liquefied natural gas (LNG) for dual fuel combined cycle power plants.
The announcement comes as Sri Lanka's Lanka Transformers Ltd (LTL) prepares to commission the initial phase of a 300MW dual fuel power plant named Sobhadanavi later this year, while also operating the older Yugadanavi plant fueled by fuel oil.
In efforts to accelerate the transition towards LNG-powered electricity generation, the Government of India has proposed an interim solution through Petronet LNG, Minister Wijesekera shared on X.com, a social media platform. Discussions held at the Ministry of Power and Energy highlighted the importance of LNG infrastructure development and gas supply to both the Yughadhanavi and Sobhadabavi power plants.
The talks, which took place on Thursday, involved officials from the Indian High Commission, Ceylon Electricity Board, Lanka Transformers Ltd, and Petronet LNG. India has previously suggested Petronet LNG as a fuel supplier for Sri Lanka's power plants.
Previously, the Ceylon Electricity Board had initiated a competitive tender to secure an LNG terminal on a Build-Own-Operate (BOO) basis. However, the project faced obstacles when the former administration attempted to bypass the tender process, engaging a private US company to supply both LNG and the terminal under a controversial take-or-pay agreement.
