News
Who prevents Litro from using available equipment?
Asantha responds to Udaya’s accusations
By Shamindra Ferdinando
Former Ceylon Petroleum Corporation (CPC) Chairman Asantha de Mel yesterday (27) said that Energy Minister Udaya Gammanpila should make a genuine effort to enter the lucrative LPG (liquid petroleum gas) market.
Minister Gammanpila, who is also an attorney-at-law, could find out who had prevented state owned Litro (formerly Shell) to undertake the project without further delay, De Mel said. “Consumers will benefit if the state entered the market. There cannot be any justification in depriving CPC /Litro opportunity to use available equipment.
The former national cricketer said so in response to The Island query whether he accepted responsibility for losses suffered in 2008 to the tune of Rs 37 mn when his controversial bid to enter the LPG market went awry.
The Island raised the issue with de Mel in the wake of Energy Minister Gammanpila calling for a report on what he called squandering of public funds on equipment et al which were never used. The former Chairman said that the incumbent minister couldn’t be unaware of what was going on at the time.
Mel said: “When Laugfs sought to extend the exclusive contract it had with the CPC to procure the entire stock of LPG gas output at the Sapugaskanda refinery, I on behalf of the CPC took up the position; the buyer should pay the real market price. They disagreed. When they declined to work out an agreement fair by both parties, I took the initiative to procure equipment necessary to begin bottling gas. They moved the Supreme Court against me over cases of hedging bringing my tenure as CPC Chairman to an end.”
The former CPC Chairman said that legal action prevented them from using the LPG produced at their own facility. Contrary to claims and unsubstantiated allegations, De Mel emphasized that the CPC undertook the project with the cabinet approval. The then Petroleum Minister A.H.M. Fowzie submitted a cabinet paper in that regard. Minister Gammanpila could easily verify it with the Cabinet office, De Mel said, adding that he wouldn’t even bother to respond to the Energy Minister if The Island had not raised the issue with him.
An irate De Mel said that for 12 years no one bothered to use the available bottling facility at Sapugaskanda. Now that the Minister Gammanpila had vowed to uncover the truth, the Pivithuru Hela Urumaya leader should first of all inquire into the circumstances under which the Laughs had entered into an exclusive agreement with the CPC to procure the entire LPG stock produced at Sapugaskanda at terms detrimental to the government. How could they expect the agreement to continue without any alterations, De Mel asked, expressing concern the incumbent government wouldn’t take tangible measures in that regard.
According to him, Laugfs moved court when the CPC was planning to call for tenders to procure gas cylinders.
Responding to another query, he said the Energy Ministry should reveal the amount of LPG produced at Sapugaskanda refinery that was made available to Litro and Laugfs, the per percentages and how the ministry intended to utilize the equipment acquired in 2008.
In April 2011, the media reported the government directing that CPC LPG output be shared 50 per cent each between Litro and Laugfs after the CPC unilaterally decided to split it 70 % to 30% in favour of Litro. The CPC moved prompted Laugfs to complain to the government.
The former CPC Chairman emphasized that prevention of state from competing with the private sector couldn’t be justified under any circumstances.
Accusations over hedging agreements signed by de Mel with two banks, in respect of buying fuel in late Nov 2008 led to his suspension by the Supreme Court. The SC also recommended that Minister Fowzie be replaced. Of the two petitions against De Mel, one was filed by the chairman of Laugfs gas company W.K.H. Wegapitiya, another petition by Kiniyawala Palitha thera, the then UNP MP Ravi Karunanayake MP and Ravi Jayawardena.
Latest News
Sun directly overhead Nittambuwa, Algama, Malwana, Aranayake, Meegahakiula and Panamkadu about 12.09 noon today (04)
The sun is going to be directly over the latitudes of Sri Lanka from 28th of August to 07th of September due to its apparent southward relative motion.
The nearest places of Sri Lanka over which the sun is overhead today (04) are Nittambuwa, Algama, Malwana, Aranayake, Meegahakiula and Panamkadu about 12.09 noon.
News
Norochcholai digs into dwindling coal stocks, two units slash generation
Plant’s output cut from 270 MW to 140 MW amidst dwindling stocks; energy analysts warn system remains “at a razor’s edge”
By Ifham Nizam
The Norochcholai coal-fired power plant is now digging into the last dredges of its coal stock, with two operational units forced to slash generation from around 270 MW to just 140 MW on Sunday as the plant ran critically short of fuel, according to independent energy analysts and sources familiar with the National System Operator (NSO).
The sudden reduction of approximately 130 MW in coal generation has once again exposed the fragile state of the country’s power supply arrangements, with the plant understood to have coal stocks sufficient only until Friday night.
“This is not how a coal plant is expected to operate. They are digging up the last dredges of coal from the plant,” an independent energy analyst told The Island.
The analyst questioned why the units had been allowed to reach this stage without earlier intervention, arguing that at least one unit should have been deloaded around 10 days ago to conserve the remaining coal.
Had that been done, the analyst said, the country could also have reduced its dependence on more expensive diesel-fired generation during the period when
coal stocks were being conserved.
The latest NSO generation figures highlight the continuing pressure on the system.
Around 7 p.m. on Sunday, when the night peak was reached, total demand stood at 2,552.7 MW. Coal contributed only 282 MW, while major hydro accounted for 1,215.8 MW and thermal-oil generation for 791.9 MW.
The night peak of 2,552.7 MW was substantially higher than the daytime peak of 2,246 MW, according to the NSO Generation Summary for August 30.
The most immediate concern is the remaining coal stock at Norochcholai.
Sources said the plant has coal only to Friday night, making the timing of the next shipment critical.
The first shipment under the emergency arrangement is expected to arrive on Friday, September 4, but the coal unloading will have to begin on the same day if
the power plant is to continue operating without further significant deloading.
That creates another potential vulnerability, with rough sea conditions posing an additional challenge to unloading operations.
Energy sector sources said that even the arrival of the September 4 shipment would not completely eliminate the danger.
The next shipment under the new coal tender would need to commence unloading around September 15. Any significant delay beyond that could again force the Norochcholai units to operate at reduced output.
“We are still at a razor’s edge”
The independent energy analyst said the situation should not be viewed merely as a question of whether a particular vessel arrives on time.
The situation also means that any further reduction in coal generation could have a direct impact on the use of oil-fired power generation, potentially increasing the cost of electricity generation.
The latest NSO figures already show the important role being played by thermal-oil generation during the evening peak, when demand rises sharply.
The analyst questioned the rationale behind allowing the coal units to continue operating at higher loading until stocks reached critically low levels instead of taking measures earlier to stretch the available inventory.
News
22A: BASL decides against making written submissions after SC refuses to grant it right of reply
The Bar Association of Sri Lanka (BASL) has informed the Supreme Court that it would not tender written submissions in respect of the petitions challenging the 22nd Amendment to the Constitution, which were heard on September 1 and 2.
The BASL said it had initially decided not to make written submissions after being deprived of the right of reply when the Solicitor General, appearing for the State, made submissions and explained the rationale and justification for the Bill.
The BASL pointed out that the Solicitor General, who made submissions at the end of the second day of the hearing, had not made a policy document available to the petitioners.
It also said the petitioners had not been given an opportunity to respond orally to the Solicitor General’s submissions or to address the Court on certain questions raised by the judges during their exchanges with the Solicitor General. (SF)
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