LNG

Free LNG terminal ‘a disaster’ for Sri Lanka – expert

Sri Lanka has received unsolicited bids for an LNG terminal, but analysts say the country could struggle to bring a facility online in the near future Sri Lanka has received unsolicited bids for an LNG terminal, but analysts say the country could struggle to bring a facility online in the near future.
By Andrew Walker 23 January 2018 0 29218
FSRU Hoegh Gallant An FSRU vessel at sea. (Höegh)

Sri Lanka should refuse South Korea’s offer of a ‘free’ LNG terminal because the accompanying 1 mtpa take-or-pay contract is unsuitable for the island’s demand profile, experts have told Interfax Natural Gas Daily.

Tilak Siyambalapitiya, managing director of Sri Lanka-based RMA Energy consultants, said a take-or-pay contract would be “a disaster for Sri Lanka, as [its] hydropower availability varies significantly from year to year”.

Hydropower has met anywhere from 30-50% of the country’s power demand over the past five years, according to statistics from the Ceylon...