News
Engineers insist Lanka’s energy security in danger
By Ifham Nizam
US firm, New Fortress Energy, was trying to take advantage of the country’s declining economic situation on the pretext of purchasing 40 percent shares of the West Coast Power Plant, Yugadanavi by paying Sri Lanka USD 250 million, but in actual fact the US firm was targeting huge returns, says Ceylon Electricity Board Engineers’ Union President Saumya Kumarawadu.
Responding to queries, Kumarawadu said that the unsolicited offer from New Fortress included clauses that required Sri Lanka to make all LNG purchases through that firm. “In other , it will give the US firm an opportunity to make more than USD 6,000 million in a 10-year period. However, if LNG purchases went through competitive bidding the amount would be much lower,” he said, adding that they were waiting to take up the matter with President Gotabaya Rajapaksa.
The transaction cost under the NFE’s LNG supply contract could be in the range of USD 3000 million for five years and could go up to USD 6000 million for 10 years, given the fact that the country would be forced to buy LNG from NFE for the plants in Kelanitissa premises as well since there was no other alternative option, he said.
Exclusive rights of supplying LNG to Sri Lanka would be given to the American company for five years initially, but the country would be compelled to extend the period and that was a great threat to national energy security, he stressed.
The CEBEU President said they feared that the Colombo-based existing and future power plants could be controlled by the US company through the LNG supply deal, which would greatly hamper the country’s electricity supply availability and reliability. Supply of LNG under the contract might not be limited to the electricity sector but could also be extended to other sectors such as transport and domestic use in the years to come.
Dhammike Wimalaratne, Secretary of CEBEU said: “New Fortress USA only agrees to buy 40% government shares of West Coast Plant by paying Sri Lanka USD 250 million provided Sri Lanka agrees to give them the exclusive rights to supply and operate both LNG FSRU infrastructure and LNG Supply to all the power stations in the country.
He too warned that the national energy security in the country which was enforced through the Country’s National Energy Policy issued in Aug 2019 was in jeopardy.
It states, “Considering the impact to the country’s energy security, operation of the first terminal and LNG procurement shall be kept under state control”
• CEB has already developed a comprehensive road map for the deployment of LNG for Sri Lanka electricity generation through a detailed feasibility study funded by ADB.
• The intention was to deploy LNG for the Colombo based power plants initially with the actual LNG requirement determined carefully in accordance with CEB’s generation plan as well as forecasted dispatch scenario.
• The tenders were separated for the procurement of LNG terminal, pipeline and LNG supply through a competitive bidding process to secure the optimum economic benefits to the country while ensuring transparency and accountability.
• International Competitive Tenders were called by CEB to procure LNG terminal (FSRU, mooring facility and other infrastructure) and by CPC to construct the pipeline network and the bids received are currently under evaluation.
• Bid documents to procure LNG through a competitive bidding process are being prepared.
A meeting between the Secretary to the President, Dr. Nandika Sanath Kumanayake and the French Ambassador to Sri Lanka, Rémi Lambert, was held on Tuesday (09) afternoon at the Presidential Secretariat.
During the discussion, the French Ambassador assured the Secretary to the President that the French Development Agency would extend its support to the Government’s programme for providing relief to those affected by Cyclone Ditwah and for rebuilding Sri Lanka. He further stated that steps are being taken to dispatch a team of experts to the country in the near future.
The Deputy Head of Mission at the French Embassy, was also present on this occasion.
India has strengthened its humanitarian support to Sri Lanka in the aftermath of Cyclone Ditwah, providing critical air assets, emergency supplies, engineering equipment and medical aid to bolster national rescue and recovery operations.
India dispatched an additional MI-17 helicopter to assist the Sri Lanka Air Force (SLAF) in ongoing air rescue missions on Tuesday (09). Two MI-17 V5 helicopters of the Indian Air Force had been operating in Sri Lanka from 29 November, conducting around 90 sorties, rescuing approximately 270 survivors, airlifting about 50 tonnes of relief material to inaccessible areas and relief camps and deploying 57 Sri Lankan troops to cut-off locations.
Having completed their flying hours, the two helicopters returned to India on Sunday (08) for mandatory maintenance and a fresh MI-17 aircraft arrived at Katunayake Airport to continue operations alongside the SLAF.
The aviation support comes alongside major maritime assistance. The Indian naval vessel INS Gharial arrived at the Port of Trincomalee on Sunday (08) carrying a 700-tonne humanitarian shipment, marking India’s fifth naval relief consignment to Sri Lanka, apart from 10 aircrafts and 5 helicopters, which have contributed towards rescues and relief operations, since the cyclone.
The shipment included essential food supplies such as pulses, sugar and milk powder, as well as bed sheets, towels, sarees, dhotis and tarpaulins for families displaced by flooding and landslides. The emergency aid is being directed to the hardest-hit districts through local relief agencies.
In a further show of engineering support, India has also handed over a 63-ton Bailey bridge and a consignment of essential medicines to Sri Lankan authorities to restore connectivity and meet urgent medical needs in affected communities.
The cargo was received by General Chaminda Wijerathne of the Sri Lanka Army Headquarters, Sunil Jayaweera, former Director Preparedness of the Disaster Management Centre (DMC), now volunteering in the response and Shan Pathirana, Deputy Director of the DMC Awareness Division.
The handover was facilitated by the Indian High Commission in Colombo.
These coordinated air, sea and engineering initiatives underscore India’s continued commitment to supporting Sri Lanka during its national emergency response and long-term recovery. The assistance forms part of India’s broader partnership to restore essential services, reconnect isolated communities and provide relief to thousands affected by Cyclone Ditwah.
In a significant gesture of solidarity and support, a relief cargo from the United Arab Emirates has been officially received in Sri Lanka.
The cargo was accepted by key representatives from the Middle East Division of the Ministry of Foreign Affairs, including Ms. Ishara De Silva and Ms. Sajeeda Rasheed, both serving as Assistant Directors.
Joining them were Sunil Jayaweera, a former Director of Preparedness at the Disaster Management Center (DMC), who has returned to volunteer after retirement and . Shan Pathirana, Deputy Director of the Awareness Division at DMC.
The cargo was presented by the Deputy Head of Mission, representing the UAE, highlighting the strong ties and commitment to humanitarian aid between the two nations.
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