Features
Cheaper and faster options available
Importing Liquefied Natural Gas – II
by Dr Janaka Ratnasiri
In Part I of this article, the Writer published in The Island of 11.01.2021, the writer estimated that liquefied natural gas (LNG) imported through the proposed floating storage and regasification unit (FSRU) will take a minimum of six years before the gas could be delivered, considering the possible delays likely to be encountered at every approval stage and the time taken for mobilizing the FSRU. He also said that there are faster ways of getting LNG into the country bypassing all these procedures which are discussed here.
TRADITIONAL METHODS OF IMPORTING LNG
Traditionally, LNG is transported in purposely built carriers of capacity 150,000 – 260,000 cubic metres (cm), which need jetties with depth over 16 m to berth. The terminal for unloading LNG requires insulated storage tanks built on the jetty enabling transfer of LNG to the tank using solid arms, vapourizers to convert LNG into gas and compressors to pressurize the gas before dispatching to customers through pipelines.
The quantity of LNG required to operate combined cycle gas turbine (CCGT) type power plants of capacity 1,000 MW at 85% plant factor is about 1 Mt, which is the minimum throughput required for economically viable operation. It is estimated that such a terminal will cost over USD 500 million and take over five years to complete.
The Writer in his article on 06.01.2021 mentioned that setting up the proposed FSRU will take a minimum of six years to commission including the time taken for obtaining many approvals, though the actual setting up time will not likely be more than 3 years.
USE OF LOW DRAUGHT SMALL CARRIERS
On the West Coast North of Colombo, the sea close to the coast is rather shallow, with the 5 fathom (9.1 m) bathymetry contour lying about 1.25 km from the coast, and the 10 fathom (18.2 m) bathymetry contour lying about 6.5 km from the coast. Hence, it is difficult to construct a traditional land-based terminal close to Colombo. However, a site has been identified at Dikkowita where there is a break in the reef which allows shallow boats to be brought in. Already a Fishery Harbour has been built at this site, and the Ministry of Fisheries had called for proposals to develop projects around the harbour. In response, a proposal was submitted to build a mini-LNG terminal adjoining the Fishery Harbour seawards and this was accepted by the Fisheries Ministry with concurrence of stakeholder organizations.
Hence, one option is to build such a mini-terminal. The proposed project envisages deploying small LNG carriers with capacity 16,000 cm (7,200 t) having a draught below 5 m to bring LNG to the country. For storage, two cryogenic tanks each of capacity 10,000 t of LNG (22,200 cm) were planned to be built on the jetty enabling transfer of LNG from a carrier direct to the storage tank. A gas-fired 300 MW CCGT power plant operating at 80% plant factor requires 285 kt of LNG annually or 24 kt of LNG monthly. With the capacity of the carrier being only 7,200 t of LNG, it has to bring 40 loads of LNG annually or 3.3 loads a month. The proponent has proposed that LNG will be supplied at the spot market price prevailing at Singapore LNG Terminal on short term contract, with supply agreements signed when the spot market price is low with safeguards against price hikes that prevail during Winter when the demand for LNG is high.
The project though accepted by the Ministry of Fisheries and a pre-feasibility study completed, it is yet to receive approval of the Ministry of Energy (MoE) which is mandated to authorize LNG import and distribution. LNG is not a commodity that can be purchased off the shelf. It has to be ordered years or months ahead even on the spot market. Unless the MoE gives the green light for the project, Proponent is unable to enter into any contract for the supply of LNG and undertake an Environmental Impact Assessment (EIA) study. Hence, sooner the MoE grants approval, earlier it will be possible to meet the President’s aspirations.
USE OF ISO INSULATED CONTAINERS
A second option is to bring LNG loaded in insulated standard size containers conforming to ISO Standards in normal container carriers. Once the LNG container is transported to Colombo Port, it could be unloaded on to a road truck and taken direct to a customer site. In view of the highly flammable nature of LNG, particularly if it leaks out and get vaporized, its delivery through the Port and transporting along highways need special approval of the Ports Authority and the Motor Traffic Department, respectively. Transporting of gas across the country as LNG in containers is a more convenient method than using pipelines, because the latter requires many time-consuming approvals, land acquisitions, long construction time and social impacts.
Once delivered at the site, the consumer has two options to unload LNG. Either, a separate insulated tank could be built to store the delivered LNG which could be subsequently re-gasified and transferred to the power plant or the factory in pipelines. Since it is expensive to build LNG storage tanks, the other option is to use the container itself for storage which can hold the gas in liquid form for over two months. With this option, it is necessary to construct three platforms on to which the containers could be unloaded. One will be for keeping the container in use, second is to keep the empty container once it runs out of gas and the third is to keep the new container.
A 40 ft container has a capacity of 46 kl of LNG which has an energy content of about 1,000 GJ. The energy demand of a 300 MW CCGT power plant as shown before is 285 kt of LNG annually which is equivalent to about 46,000 GJ per day. This means a 300 MW CCGT power plant can be fed with 46 container loads of LNG per day imported in standard size containers. Currently, Colombo Port handles more than 5,500 of 20 ft equivalent containers daily, and therefore additional 46 containers will pose no problem. Also, with the anticipated expansion of the Port, it should be able to handle even a higher volume of containers to feed more power plants.
President’s Saubhagye Dekma Policy Framework says “Convert Kelanitissa plant to a natural gas turbine plant and implement two similar plants in Kerawalapitiya and Hambantota before 2023”. The only way to bring NG to Kelanitissa and Kerawalapitiya before 2023 to realize the President’s aspiration is to use insulated containers as described above. Hence, the relevant authorities should give the necessary clearance for this project as a matter of priority.
SUPPLYING LNG FOR DIFFERENT APPLICATIONS
For the operation of a power plant, it is necessary to have a separate storage tank for transferring the LNG brought in containers before it is vapourized for feeding to the power plant since continuity of supply is important. For use in Industrial Estates or Housing Schemes, where the demand is low, the second option mentioned above is more suitable. Once re-gasified, the gas could be supplied to individual industries in an Industrial Estate or individual apartments in a housing scheme in a local pipeline network, managed by an approved organization having licensed staff.
Containers containing LNG meant for transport applications could be taken to a central yard where the LNG is converted into gas and then pressurized for loading into CNG bowsers. Vehicles with spark-ignited (SI) engines could easily be converted into operation with natural gas, supplied under pressure as CNG in bowsers designed for CNG transport. Facilities for dispensing CNG to motor vehicles could be made available at road-side fuel outlets, using the same procedure as that used for transporting LPG and feeding it to vehicles. The only requirement is that the operator will have to obtain a licence from the Petroleum Corporation and enhance the fire-fighting facilities in view of the additional fire risks. With the introduction of NG operated vehicles, the vehicle emission testing centres will become redundant.
Natural gas cannot be used directly in compression-ignited engines as it lacks properties to self-ignite upon compression as in the case of diesel oil. But it can be used blended slightly with diesel, which will provide the necessary ignition while NG will provide the necessary power. Though the use of NG as a substitute for diesel will reduce air pollution and has a price advantage, it does not give the same power output as that from a diesel engine with similar capacity. Further, NG operated heavy vehicles are about 50% more expensive than a similar diesel heavy vehicle. Hence, its use has not caught up like in the case of vehicles with SI engines.
OTHER OPTIONS AVAILABLE
The Cabinet of Ministers, at its meetings held on 09th May and 02nd October, 2018, has granted approval for a Chinese Company to build a 400 MW gas-fired power plant at Hambantota Port along with an LNG terminal, as a government-to-government project and implemented as a joint venture with the CEB. The electricity generated will be used solely for feeding the Chinese Industrial Estate at Hambantota. The project has been granted necessary approvals including EIA on a fast tract basis and its construction is underway.
A third option is to negotiate with China to permit Sri Lanka to use its terminal for bringing LNG in separate carriers engaged by Sri Lanka, upon payment of a toll fee. In many instances, LNG terminals are operating below capacity and if it is the case with the terminal at Hambantota, this should be possible. On the other hand, Sri Lanka could negotiate with China to import and supply Sri Lanka’s requirements at an agreed price.
The imported LNG after regasification could be brought to Kerawalapitiya and Kelanitissa in pipelines possibly laid along the Highway Reservation from Hambantota with no issues of land acquisition coming up. However, laying of a gas pipeline requires a detailed EIA study, which may take a minimum of one year including time taken to issue the terms of reference and public scrutiny time. In addition, the time taken for negotiations with China and getting approval from the Cabinet will take a minimum of one more year.
Thereafter, preparing bid documents and calling for proposals from prospective contractors, evaluating the proposals and awarding the contract and carrying out the actual work will likely to take at least another 3 years, which will extend the total time period to 5 years. It may be possible to fast tract the process by conducting some of these activities in parallel. One advantage of this option is that it is a more permanent solution than the rest, but will have to depend on the Chinese for its sustenance.
CONCLUSION
Several options are available for importing LNG other than building a land-based or a floating terminal as currently proposed. Some of these are of shorter duration but of limited capacity, while another is of permanent nature and also has high capacity. However, a final decision has to be taken after carrying out a detailed technical and financial assessment of each option, assessing the future demand for overall energy in the country as well as possible sectors where energy needs could be met from natural gas. The Ministry of Energy will have to give the highest priority to undertake such a study.
Features
The challenge of being positive about SAARC
It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.
Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.
However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?
There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.
The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.
Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.
Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.
The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.
On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.
In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.
Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.
Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.
The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.
These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.
Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.
There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.
However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.
Features
OPA seminar examines Sri Lanka’s economic recovery, resilience and growth pathways
A seminar, “Sri Lanka’s Economic Crossroads: Navigating Recovery, Resilience and Growth” was recently held by the Organisation of Professional Associations of Sri Lanka (OPA) at the OPA Auditorium, bringing together economists, OPA members, and professionals from diverse fields for an insightful discussion on Sri Lanka’s economic recovery and future growth prospects.
The event was held under the patronage of Jayantha Gallehewa, President of the OPA, and was jointly organised by the National Issues Committee (NIC) and the Seminars, Workshops and Programmes Committee of the OPA. The event reaffirmed the organisation’s commitment to advancing professional excellence, fostering insightful intellectual engagement, facilitating interdisciplinary knowledge exchange and creating a constructive platform for informed dialogue on issues of national importance.
The panel of speakers comprised Dr. Harsha Aturupane, Lead Economist and Programme Leader for Human Development at the World Bank for Sri Lanka and the Maldives; Dr. Achinthya Koswatta, Senior Lecturer in Economics at the Open University of Sri Lanka, and Anushan Kapilan, Lead Economist at Verité Research.
In his welcome address, the President of the OPA emphasised that Sri Lanka was at a critical juncture in its economic recovery journey where sustained reforms, effective implementation, and collective national commitment are essential to achieving long-term stability, resilience and inclusive growth. He noted that the country had experienced one of the most severe economic crises in its history with the economy contracting by 7.8 percent in 2022 and a further 11.5 percent in 2023, resulting in significant economic and social challenges.
Delivering his introductory remarks Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee, underscored the need to move beyond short-term economic stabilisation towards a comprehensive agenda of structural transformation. He observed that the economic crisis had revealed deep-rooted weaknesses within the economy, including persistent fiscal pressures, rising public debt, foreign exchange limitations, and insufficient diversification of the export base. He stressed that addressing these challenges through strategic reforms, institutional strengthening and long-term economic planning would be essential to establishing a more resilient and competitive economy.
While acknowledging recent positive developments, including improved inflation management, tourism recovery and signs of economic stabilisation, Wijeyaratne stressed the need to advance reforms aimed at strengthening fiscal discipline, enhancing productivity, improving competitiveness, developing human capital and reinforcing governance and institutional effectiveness.
He further highlighted the important role of professionals, businesses, academia and other stakeholders in contributing to evidence-based dialogue and supporting Sri Lanka’s journey towards a resilient, inclusive and sustainable economic future.
Delivering the keynote presentation, Dr. Harsha Aturupane provided a comprehensive assessment of Sri Lanka’s economic prospects within the broader context of global economic transformation. He argued that Sri Lanka functioned as a small open economy whose performance is significantly influenced by developments in the global marketplace. External factors could not be controlled, and the country must strengthen its domestic capacity and resilience to respond effectively to international economic shifts, he noted.
Tracing the evolution of global economic systems, Dr. Aturupane highlighted the transition from ideological divisions between state-controlled and market-oriented economies towards increasingly pragmatic approaches focused on growth, competitiveness and development. He noted that Sri Lanka’s own economic journey reflects a similar evolution, with contemporary policy debates now centred on practical solutions for sustainable economic progress.
The presentation also examined the transformative impact of globalisation. Dr. Aturupane observed that global economic integration had enabled several East Asian economies, including South Korea, Singapore, Taiwan and Hong Kong, to achieve remarkable economic advancement through export-led growth strategies. Sri Lanka similarly benefited from this process through the expansion of its apparel industry and increased integration into global value chains.
Turning to Sri Lanka’s recovery programme, Dr. Aturupane emphasised that the ongoing stabilisation process should be viewed as a national programme supported by the International Monetary Fund rather than solely as an IMF initiative. He observed that strong worker remittances, improved tourism earnings, enhanced government revenue mobilisation and prudent import management have contributed significantly to economic stabilisation.
Despite this progress, he cautioned that rebuilding foreign exchange reserves and meeting future debt obligations remain major challenges. He underscored the need to strengthen export performance, attract investment and generate sustainable foreign exchange earnings to ensure long-term economic resilience.
The discussion also focused on monetary stability, inflation management and exchange-rate policy. Dr. Aturupane stressed that maintaining price stability was fundamental to sustainable growth and household welfare, while sound monetary policy remains essential for preserving economic confidence.
Looking beyond stabilisation, he argued that Sri Lanka must transition towards a broader economic transformation agenda. Sustainable growth, he noted, will depend on expanding productive capacity through investment, technological advancement, innovation, skills development and structural reforms.
Among the key constraints identified was the high cost of energy, which continues to affect competitiveness and investment attractiveness. Dr. Aturupane emphasised the importance of improving efficiency and affordability within the energy sector to enhance Sri Lanka’s business environment.
He further highlighted the social dimensions of the crisis, noting the rise in poverty and economic vulnerability among households. Strengthening social protection systems and ensuring inclusive growth, he argued, must remain central components of the national development agenda.
Another critical challenge identified was Sri Lanka’s demographic transition. With an ageing population, outward migration and evolving labour market dynamics, the country is increasingly confronting labour shortages in several sectors. Dr. Aturupane suggested that greater automation, increased labour-force participation and strategic workforce planning would be necessary to address these emerging realities.
Concluding his presentation, he emphasised the need to improve governance, strengthen institutions, enhance competitiveness and create an enabling environment for private sector investment. Sri Lanka’s future success, he noted, will depend on its ability to move decisively beyond crisis management towards a development model founded on resilience, innovation, productivity and inclusive growth.
Dr. Achinthya Koswatta reiterated the importance of policy consistency and predictability in fostering investment and industrial development. She observed that frequent policy changes create uncertainty and discourage long-term investment decisions, whereas stable and coherent policy frameworks build confidence and support sustainable economic transformation.
Meanwhile, Anushan Kapilan highlighted the substantial progress achieved in restoring macroeconomic stability following the recent crisis. He noted significant improvements in fiscal performance, including increased government revenue, reduced reliance on debt financing and a historically low fiscal deficit.
He further observed that public debt levels are declining faster than anticipated, economic growth has exceeded expectations and inflation has been brought under control more rapidly than forecast. Nevertheless, he cautioned that the recovery remains uneven, particularly within the industrial sector and that many households have yet to experience a meaningful improvement in living standards.
The seminar was expertly coordinated by Eng. Chamil Edirimuni, Vice President of the OPA and Chairman of the Seminars, Workshops and Programmes Committee, while the technical moderation and interactive discussion session were facilitated by Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee.
The event was attended by Tisara De Silva, President-Elect of the OPA, Eng. Ravi Rupasinghe, General Secretary, Past Presidents, members of the Executive Council, representatives of the General Forum and professionals representing a wide range of disciplines.
The seminar concluded with a vibrant exchange of ideas and perspectives, reaffirming the importance of evidence-based policy dialogue, institutional collaboration and collective national commitment in advancing Sri Lanka’s economic recovery, resilience and sustainable growth.
Features
Her roots run deep in Sri Lanka
Yes, for UK-based presenter and artiste Samantha Kay, home is where the heart – and the roots – are. And her roots run deep in Sri Lanka.
In an exclusive interview with The Island, Samantha says “I’m proud to be Sri Lankan. My mum is from Kandy and my dad is from Colombo, so Sri Lanka has always held a very special place in my heart.
“Whenever I visit Sri Lanka, I love spending time on the beautiful south coast, especially Hikkaduwa and Mirissa. It’s somewhere I always feel connected to my roots and completely at peace.”
Now living in Bournemouth, on the south coast of England, where, she says, she is lucky to be close to some of the UK’s most beautiful beaches, including the iconic Sandbanks, Samantha has built a career that refuses to fit into one box.
She is a radio presenter, podcast host, singer-songwriter, personal trainer and life coach.
“I genuinely love the variety because every role allows me to connect with people and, hopefully, make a positive difference in someone’s day.”
Of course, music has taken her far.
One of her proudest achievements, she says, was releasing a song with 90s music icon Angie Brown, which reached No. 9 in the UK Club Charts.
She also reached the final stages of The X Factor and performed at Wembley Stadium in front of thousands.
Beyond music, Samantha competed in bikini bodybuilding across the UK, winning several titles. “It taught me discipline, resilience and self-belief,” she recalls.
Today, her focus is on radio, podcasting and coaching women. Her podcast encourages people to live life on their own terms rather than feeling pressured to follow society’s expectations.
Says Samantha: “Whether someone is single, changing careers, travelling solo or simply trying to find their purpose, I want them to know that it’s never too late to create a life that feels authentic. If you’ve ever felt like you don’t fit into the box, maybe you were never meant to.”
Samantha Kay also spent a year in Dubai, performing at five-star hotels, including FIVE, and coaching at the iconic outdoor gym on Palm Jumeirah.
“I taught strength and conditioning classes, and hosted wellness retreats, combining my passion for music, health and inspiring others.”
However, with family matters calling her back to the UK, she made the choice to return. “Family comes first,” she says.
Looking ahead, Samantha plans to grow her radio and podcast work, release more music, and expand her wellness retreats.
“My biggest passion is helping people, especially women, build confidence and believe in themselves,” she says.
“Wherever my career takes me, I hope to continue inspiring others to live with courage, kindness and authenticity, while never forgetting my Sri Lankan roots.”
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