Construction of LNG Terminal

By Admin

The electricity generating system in Sri Lanka is in a state of transition from a predominantly hydroelectric power generation to a mixture of thermal & environment friendly renewable energy sources. The share of thermal power generation has already overtaken hydro, with plants powered by the heavy fuel and coal commissioned recently.

Demand for electricity has been growing in the country in par with the GDP growth and the aim of the Mahinda Chinthana vision is to ensure electricity for all sectors of the community. Although power generation with Coal is considered as the least cost generation option, the associated, resulting from it is a major drawback and an impact upon the carbon foot print of the country.

LNG, which is widely regarded as the fuel of the future is not used in Sri Lanka at present. In order to make use this situation the vast space available in close proximity to the port is ideal to station a power plant utilizing LNG and a dedicated LNG facility will be constructed in the port in order to serve the future LNG needs of the country.

The exploratory drilling in the Mannar basin has yielded positive result for the commercial extraction of LNG. In such a scenario MRMR Port could be an ideal port for establishing a dedicated LNG terminal and power plants in close proximity as there as there are many restrictions in Galle and Colombo ports.