ADB to fund study on possibilit­y of SL adopt­ing LNG for power gen­er­a­tion

Daily Mirror (Sri Lanka) - - PROVINCIAL -

The Asian De­vel­op­ment Bank (ADB) will fund a fea­si­bil­ity study and sur­vey to ex­plore the possibilit­y of Sri Lanka adopt­ing liq­ue­fied nat­u­ral gas (LNG) for power gen­er­a­tion to help di­ver­sify the en­ergy mix of the is­land na­tion.

ADB said the project would be fa­cil­i­tated with a tech­ni­cal as­sis­tance spe­cial fund of US $ 225,000.

Ac­cord­ing to ADB, the project will in­clude a de­tailed study by con­sid­er­ing the de­mand for nat­u­ral gas in Sri Lanka, global LNG mar­ket, LNG pric­ing and con­tracts, possibilit­y of sup­ply­ing LNG to re­gional mar­kets and other so­cial and en­vi­ron­men­tal as­pects.

With the Mal­dives con­sid­er­ing im­port­ing LNG for power gen­er­a­tion and other uses, an LNG ter­mi­nal in Sri Lanka with suf­fi­cient stor­age and ad­e­quate sup­ply will ben­e­fit from low­er­ing the en­ergy cost of both coun­tries, ADB said.

The study is be­ing em­barked fol­low­ing a writ­ten re­quest by the Sri Lankan gov­ern­ment, through the Ex­ter­nal Re­sources Depart­ment, to ADB to sup­port the Cey­lon Elec­tric­ity Board (CEB) in its ef­forts in ex­plor­ing LNG as a fuel for power gen­er­a­tion.

ADB in its project out­line high­lighted that the Power and Re­new­able En­ergy Min­istry also sees a greater role for LNG in its goal of re­duc­ing the use of oil and coal in the country, par­tic­u­larly for power gen­er­a­tion.

“This is also in line with the gov­ern­ment’s key de­vel­op­ment pri­or­ity to di­ver­sify the ex­ist­ing gen­er­a­tion mix to in­clude cleaner en­ergy re­sources and cli­mate change mit­i­ga­tion ac­tions. A small-scale TA was pre­ferred to ini­ti­ate the nec­es­sary ac­tiv­i­ties for the LNG study quickly as re­quested by the gov­ern­ment,” ADB said.

The de­vel­op­ment lender said the CEB does not have in-house ca­pac­ity to un­der­take the mentioned tasks since LNG is en­tirely new to Sri Lanka.

“The tech­ni­cal as­sis­tance will pro­vide ex­ter­nal con­sul­tants to as­sist in pre­par­ing the fea­si­bil­ity and sur­vey re­port for LNG im­port, LNG ter­mi­nal and seaside fa­cil­i­ties, in­fra­struc­ture and other al­lied fa­cil­i­ties for LNG trans­mis­sion to the prospec­tive power plants,” it said.

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