Recognising the importance of utilising Liquid Natural Gas (LNG) as a source of energy production for the country, the Government this week gave the green light to establish a 400 MW LNG power plant in Hambantota.
The Cabinet on Tuesday approved plans for the Government to establish the LNG power plant as a joint venture between the China Machinery Engineering Corporation (CMEC) and the Ceylon Electricity Board.
The project is in line with the Long-Term Power Generation Expansion Plan, to be implemented from 2018 to 2037, of the Public Utilities Commission of Sri Lanka.
The Cabinet memorandum was submitted by Prime Minister Ranil Wickremesinghe in his capacity as the Minister of National Policies and Economic Affairs.
Accordingly, the Cabinet paper read: “Currently, Sri Lanka is not utilising Natural Gas as a primary fuel. The Long Term Generation Expansion plan prepared by the Ceylon Electricity Board and approved by the PUCSL has identified LNG as one of the promising sources of energy to meet the rising energy demands of the country.”
Meanwhile, construction on the 300 MW LNG power plant proposed for Kerawalapitiya is expected to commence in January next year. (FT)