New Fortress finalizes deal to build LNG terminal in Sri Lanka

Wes Edens-led New Fortress Energy said it has finalized a recently announced deal which includes building an LNG import facility in Sri Lanka.

NFE said in a statement it had executed a definitive agreement with Sri Lanka to buy 40% ownership stake in West Coast Power, the owner of the 310 MW Yugadanavi power plant based in Colombo. In addition, the deal includes the rights to develop a new LNG terminal.

The 310 MW Yugadanavi power plant currently has a long-term power purchase agreement to provide electricity to the national grid that extends through 2035. This power plant consists of General Electric turbines and runs on natural gas in combined cycle, according to NFE.

As part of the transaction, NFE will have gas supply rights to the Kerawalapitya power complex, where 310 MW of power is operational today, but there are expansion plans to boost the capacity to an additional 700 MW, of which 350 MW would go online in 2023.

The power complex is the foundation of the baseload power that serves the country’s population of 22 million people.

LNG terminal to begin operations in 2023

Besides the power plant developments, the US LNG firm plans to build an offshore receiving, storage and regasification terminal located off the coast of Colombo.

Sri Lanka’s first LNG terminal could begin operations in 2023.

New Fortress said it would initially provide the equivalent of an estimated 1.2 million gallons of LNG (about 35,000 MMBtu) per day to the government of Sri Lanka, but it expects “significant growth” as new power plants become operational.

“This is a significant milestone for Sri Lanka’s transition to cleaner fuels and more reliable, affordable power,” said Wes Edens.

“We are pleased to partner with Sri Lanka by investing in modern energy infrastructure that will support sustainable economic development and environmental gains,” he said.

Most Popular

Venture Global to introduce gas to tenth Plaquemines liquefaction block

US LNG exporter Venture Global LNG has received approval from the US FERC to introduce natural gas to the tenth liquefaction block at the Plaquemines LNG terminal in Louisiana as part of the plant’s commissioning process.

Kimmeridge’s Commonwealth LNG seeks expedited approval from FERC

Kimmeridge's Commonwealth LNG is seeking expedited final approval from the US FERC as it looks to make a final investment decision on its planned LNG export plant in Louisiana later this year.

Excelerate’s FSRU arrives in Germany

Excelerate’s 138,000-cbm FSRU Excelsior has finally arrived in Germany, where it will start serving DET's second LNG import terminal in Wilhelmshaven.

More News Like This

Excelerate in $700 million senior notes offering

US FSRU player Excelerate Energy aims to raise about $700 million via an offering of unsecured senior notes due 2030.

Excelerate buys NFE’s Jamaica business for $1.05 billion

US FSRU player Excelerate Energy has entered into a definitive agreement with compatriot LNG player New Fortress Energy to acquire NFE’s business in Jamaica for $1.055 billion in cash.

NFE amends Puerto Rico gas supply contract

US LNG player New Fortress Energy has amended its recently extended 80 TBtu islandwide gas supply contract with the Puerto Rico Electric Power Authority.

NFE shipped 12 Altamira LNG cargoes

US LNG firm New Fortress Energy has shipped 12 liquefied natural gas cargoes from its FLNG project off Mexico's Altamira since August last year, while the company continues to move forward with work on its second unit, which will be installed onshore Altamira.