FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» GLAS will be winner with Super Gain.
by vijay singh Today at 3:22 am

» Lets try to understand what is happening in the market right now
by celtic tiger Today at 1:56 am

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Gowri123 Today at 12:05 am

» Anyone attended AGM?
by Vishwanarth Yesterday at 11:17 pm

» Is ASPI Overvalued now or heavily undervalued ?
by EquityChamp Yesterday at 11:12 pm

» A Strong bounce back of ASI is on the cards
by samaritan Yesterday at 6:17 pm

» Prominent Investors of the colombo stock market
by samaritan Yesterday at 6:06 pm

» DIPD/HAYC/HAYL
by Eranga87 Yesterday at 5:55 pm

» ACL post share split trading and the future potential
by sheildskye Yesterday at 3:27 pm

» Current 2021 Februray Unit Trust/Unit Fund Per Annum percentages
by N W Yesterday at 2:44 pm

» WindForce (WIND) IPO Overview
by EquityChamp Yesterday at 10:09 am

» Norway -> biggest shareholder of NDB
by shihan 93 Yesterday at 9:56 am

» Many positives for Next week
by Vishwanarth Sat Mar 06, 2021 12:29 pm

» Maldives records over 100,000 tourist arrivals in first 35 days of the year
by samaritan Sat Mar 06, 2021 9:59 am

» Kind of behavior traders engage in when they are frustrated and want their money back from the market. Stock market for beginners
by lal62 Sat Mar 06, 2021 7:40 am

» EXPO EXPO EXPO
by Gowri123 Sat Mar 06, 2021 12:35 am

» still I believe this
by 100Bill Fri Mar 05, 2021 9:21 pm

» SUNSHINE HOLDINGS PLC (SUN.N0000)
by ErangaDS Fri Mar 05, 2021 8:19 pm

» Investor sentiment - will there ever be a recovery?
by xhunter Fri Mar 05, 2021 7:49 pm

» Let's have a stop-loss strategy to maximize investment returns in stock market
by EquityChamp Fri Mar 05, 2021 7:19 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » EXPERT CHRONICLE™ » SL moves closer to policy on natural gas for power generation

SL moves closer to policy on natural gas for power generation

Go down  Message [Page 1 of 1]

samaritan

avatar
Moderator
Moderator
SL moves closer to policy on natural gas for power generation Maxresdefault

  • Petroleum Act to be replaced, single natural oil and gas company mooted
  • Natural gas cheaper and scalable, project of any scale will impact economy in longer-term



By Darshana Abayasingha


SL moves closer to policy on natural gas for power generation Image_24b10d02a8
Ministry of Energy Advisor Saliya Wickramasuriya
Sri Lanka’s draft Natural Gas Policy, which went through several versions, has been rewritten in certain parts, especially its policy objectives and framework, and is now more aligned with the original intent,
reveals Ministry of Energy Advisor Saliya Wickramasuriya. 
The draft policy began its journey in 2013 and has been “on a long and winding road” and is an essential part of the above ground factors for oil and gas companies to consider to invest in the region, he added. 

Two natural gas deposits were discovered during exploration in the Gulf of Mannar, potentially containing over one trillion cubic feet of natural gas. The news of the discovery brought excitement to the island nation and its energy sector, but since then progress has been hampered by the lack of a recognised Government policy on natural gas. The deposits are estimated to be adequate to fulfil Sri Lanka’s energy needs for well over three decades. 

Recently, the Board of Investment of Sri Lanka said it signed a $ 97.2 million agreement with Pearl Energy to allow the setting up of a floating liquefied natural gas storage unit off Hambantota, with plans to re-export fuel to the Maldives and other South Asian nations. Sri Lanka does not possess any Liquefied Natural Gas power (LNG) plants as yet. 

Wickramasuriya was speaking during a web forum hosted by policy.lk on Sri Lanka’s potential future with natural gas. 

There the question was posed as to what steps Sri Lanka would take until such time it develops LNG generation capabilities, plus formalising action with respect to offshore drilling. Wickramasuriya responded: “It all depends on how it is sequenced and managed. Government intervention at this stage is important in terms of coordination and we have had several discussions with several actors. My view is that any project of any scale that will break down the barrier of having no gas consumption in Sri Lanka will make an impact on our economy in the longer-term. Because there is a lot of potential gas demand it could unlock. Natural gas is becoming more scalable and cheaper in terms of infrastructure, so it’s not unfeasible to have a short-term gas project based on some form of temporary import infrastructure like small barges or gas bullets. There is a variety of technology solutions available that can come in at different price points.”

LNG has grown as an important fuel over the past couple of decades, providing diversity to a nation’s fuel mix. With many countries looking to curb usage of hydro carbons – essentially coal and oil – natural gas is the cleanest fossil fuel available for consumption and power generation. 

Sri Lanka’s energy mix is mostly coal and oil, and countries like India and China are already looking at natural gas to replace oil and coal in transportation and industrial sectors in particular. Natural gas is however extremely difficult to transport long distances in its natural state, therefore it is cooled to (-)162 degrees where it becomes a liquid state (LNG). 

Accordingly, to import LNG a country needs to have significant regasification infrastructure, tanks and piping that do not come cheap. However, relatively new technology could help countries like Sri Lanka which is a small market. Small-scale LNG is an alternative to very large infrastructure fixed on land, such as floating storage that is cheaper and uses less space. 

However, given that Sri Lanka will soon have access to its own offshore deposits to power a considerable period of time, Wickramasuriya opines that not all projects that have expressed interest in importing LNG to Sri Lanka will succeed. 

He feels that the very first one will automatically remove those who haven’t started yet – so there is strategic interest in moving fast. Sri Lanka has projects being proposed in different places at various levels of approval from India, South Korea, China and the US, and it becomes a matter of seizing the most viable and earliest to market project, he said. 

But why consider LNG, which is in effect another hydro carbon with relative price volatility, and how does Sri Lanka develop demand for a fuel that has no customer base at all in the country, it was posed.

“One of the objectives of the policy is to create a formalised market for the gas, which we will eventually produce. The end game is to economically produce gas from Sri Lanka’s domestic reserves, assuming we are using gas by then. LNG has become a transition fuel in most parts of the world because of the rapid advance of renewable energy technology. Here in Sri Lanka where there is coal and oil, there is room for gas. We are a long way away from the renewable power target of 80% in Sri Lanka, but that still does put pressure on the gas market. We don’t want to lose out on the end game, because having gas-based power generation is better than coal and oil. One of the objectives of the LNG project is to create demand that will leverage the market, reduce prices and bring down barriers to entry for our gas produced offshore. Wherever we are using a form of energy for power generation which is fuel based there is still room for gas in that discussion,” Wickramasuriya asserted. 

A former Chairman of the Board of Investment of Sri Lanka, the Ports Authority and Director General of the Petroleum Resources Development Secretariat, Wickramasuriya said consumers would be the biggest stakeholder in the process, as the expectation with the introduction of gas to the power generation mix is to reduce cost, carbon emissions and lessen socio-economic impacts. LNG ticks all those boxes. 

The resource costs should eventually be zero, he adds, notwithstanding capital expenditure, and the real focus should be on the economic value it brings to Sri Lanka over the next 25 years. “The larger you scale up domestic supply the bigger the price comes down.” 

Upstream supply regulations have already been updated in the draft policy, which is useless unless it is supported by law. To meet this end the Government is looking at replacing the petroleum act with one that clearly defines related questions on regulations, Wickramasuriya added. 

The act will look after the upstream regulations and producers, whilst the Public Utilities Commission will be the regulator on the downstream side. These will all be centred to a ministry and a single natural oil and gas company where all transactions will happen, he revealed. 

But the question persists with much of the world moving aggressively towards renewable energy, does it make economic and environmental sense to pursue LNG when renewable is the way forward?

“That’s true, the world is moving towards renewable energy, but I don’t see the same rush in Sri Lanka. The moment we have our policy aligned towards moving for renewable energy, I believe the gas we have around us can stay in the ground. Until such time a clear direction is established, we will be using coal and fuel. Sri Lanka is still not aligning with global trends; we look at them closely but we haven’t still succeeded in harnessing their benefit for our economy.”

“If we use gas at all, let it be our gas. The whole power generation picture is changing. Coal power plants that chug along day-in day-out at same load factors are being replaced by smart grids and coordination of virtual power plants, which include renewable energy. We haven’t seen that transition in Sri Lanka yet. We still need to do well in the old paradigm. So, if we are using fossil fuel let it be gas and then let the end game be domestic gas so we can use that as import substitution,” Wickramasuriya stated.  

He added that the feasibility of projects proposing to import LNG to Sri Lanka needed to be very thoroughly examined before we took them seriously. “I have not seen anything personally which convinces me that they are ready for the green light and go,” he said.


http://www.ft.lk/front-page/SL-moves-closer-to-policy-on-natural-gas-for-power-generation/44-709538


_________________




The biggest risk in life is not taking any risk at all.
Share this post on: redditgoogle

No Comment.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum