New Fortress Energy Inc and The Government of the Democratic Socialist Republic of Sri Lanka have jointly announced that they have executed a definitive agreement for New Fortress’ investment in West Coast Power Limited (WCP).
WCP is the owner of the 310 MW Yugadanavi Power Plant based in Colombo, and has the rights to develop a new LNG Terminal off the coast of Colombo, the capital city.
As part of the transaction, New Fortress will have gas supply rights to the Kerawalapitya Power Complex, where 310 MW of power is operational today and an additional 700 MW scheduled to be built, of which 350 MW is scheduled to be operational by 2023.
New Fortress said: “We are pleased to partner with Sri Lanka by investing in modern energy infrastructure that will support sustainable economic development and environmental gains.”
New Fortress will acquire a 40 percent ownership stake in WCP and plans to build an offshore liquefied natural gas (LNG) receiving, storage and regasification terminal located off the coast of Colombo. New Fortress will initially provide the equivalent of an estimated 1.2 million gallons of LNG (~35,000 MMBtu) per day to the GOSL, with the expectation of significant growth as new power plants become operational.
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 is configured to run on natural gas in combined cycle.
The terminal is expected to begin operations in 2023.
For more information visit www.newfortressenergy.com
