Ruling party insists on New Fortress Energy deal despite objection by allies

2 November 2021 12:00 am Views - 74

• The company had agreed to supply LNG at US $ 1.40 a unit for five years

By Kelum Bandara

Despite objections by alliance partners, the ruling Sri Lanka Podujana Peramuna (SLPP) yesterday insisted on the need to proceed with the LNG (Liquefied Natural Gas) project with New Fortress Energy, an American company. 

Delivering remarks to the media at the regular press conference, SLPP General Secretary MP Sagara Kariyawasam said the American company had agreed to invest US $ 250 million in acquiring 40 per cent shares of Yugadanavi Power Plant. He said this was a sum much higher than expected.

In addition, Mr. Kariyawasam said the American company had agreed to supply LNG at US $ 1.40 a unit for five years, whereas the highest bidder qualified through the tender process offered it at US $ 3.15 a litre for ten years.
“We want to know why some of these government ministers insist on getting it at a higher rate,” he said. He said electricity prices could be slashed substantially if the LNG project were implemented as planned.      

 

• The American company had agreed to invest US $ 250 million in acquiring 40 per cent shares of Yugadanavi Power Plant. He said this was a sum much higher than expected