New Fortress to proceed with Sri Lanka LNG
NY-based gas-to-power developer New Fortress Energy will continue with the plans for the Sri Lanka LNG project after the country’s court discharged the opposing development.
NFE issued this statement following a favorable ruling on 4 March by the Supreme Court of Sri Lanka. The court considered the merits of all the fundamental rights petitions filed seeking to halt NFE’s development of natural gas power solutions in Sri Lanka. Then, the Court fully dismissed the petitions without further hearing.
NFE and the Sri Lanka goverment agreed in September 2021 to construct a new offshore LNG terminal near Colombo. The LNG import terminal was to introduce LNG to Sri Lanka in order to push its transition to cleaner energy.
New Fortress will have gas supply rights to the Kerawalapitya Power Complex. It will initially provide the government an estimated 1.2 million gallons per day of LNG. This will supply both the currently operational 310 MW Yugadanavi and an additional 350 MW at the Sobadanavi Power Plant. The latter will start operations in 2023.
The definitive agreement is subject to customary conditions.
“We are pleased that the Court has dismissed these petitions, as NFE can now proceed with our plans to deliver cleaner fuels and more reliable, affordable power to Sri Lanka,” said Wes Edens, CEO of New Fortress Energy. “We look forward to partnering with the Government of Sri Lanka by investing in modern energy infrastructure that paves the way for a sustainable and prosperous future for all Sri Lankans.”
Delivering cleaner and cheaper fuels to Sri Lanka will overall support the country’s growth.
The LNG terminal will begin operations in 2023, according to previously revealed plans.
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