Petronet LNG signs agreement with Sri Lankan govt for power generation

The Sri Lankan government and a state-run Indian firm on Tuesday signed an agreement to develop infrastructure for storage, regasification and LNG supply for a combined cycle power plant in the island nation, according to the power and energy ministry here.

The memorandum of understanding (MoU) was signed between Sri Lanka's LTL Holdings Limited and India's Petronet LNG Limited for the infrastructure development of the Sobadhanavi Combined Cycle Power Plant at Kerawalapitiya, north Colombo.

The Sri Lankan Minister of Power and Energy, Kanchana Wijesekera, and the Deputy High Commissioner of India, Satyanjal Pandey, signed the MoU at a ceremony here.

Wijesekara said the power generation could be as low as fifty per cent less here than generation through fuel usage.

"MOU for the development of Storage facilities, Regasification unit in Kerawalapitiya and the supply of LNG for the Yugadhanavi, Sobadhanavi & other LNG power plants in Sri Lanka was signed today," Wijesekera said in a post on X.

He said the initiative will "reduce the cost of energy from thermal power generation to the consumer from 2026, contribute towards the clean energy transformation, stabilise the grid for renewable energy integration, create a domestic market for LNG, facilitate LNG bunkering in the future & domestic other LNG requirements."

"MOU between LTL Holdings Ltd Sri Lanka & Petro Net LNG of India aims to invest in development and implement the 18-month programme from the signing of the MOU to facilitate the LNG requirements through ISO container from Petro Net LNG Kochi Terminal to Port of Colombo and Kerawalapitiya to 1000 MWs of LNG power plants," he said.

The 350 MW LNG-based Combined Cycle Power Plant Sobadhanavi' is a landmark power project currently underway in Sri Lanka, according to the adaderana.lk news portal.

"Once commissioned, it would be the largest IPP (independent power producer) in the country and the first power plant to operate with LNG, paving the way for the country to transition to greener forms of power generation from conventional thermal power," it said.