MP Sagara Kariyawasam, The Secretary of Sri Lanka Podujana Party claims that Energy Minister Udaya Gammanpila’s strong objection against New Fortress Energy agreement was inability to offer the LNG supply company which he was behind. He further said that Although Gammanpila backed company was offered the tender to supply LNG it would at the rate of 3.15 USD per British Thermal Unit, New Fortress Company ready to supply the same at 1.1 USD.
Having an interview with Lankasara, Kariyawasam further said that the Company selected by the tender process too demands a 10 year monopoly of supply LNG. If the government give the tendered company we would have to pay three fold price for LNG he elaborated.
“There is an energy crisis in our country. From the time of Karu Jayasuriya as the Minister of Energy and the Chandrika Kumaratunga government there was blackouts per day for two or three hours. It was President Mahinda Rajapaksa who sought a solution to this crisis. What he did was build two power plants. One is Norochcholai power plant coal. There is a world opinion that coal power plants are not so environmentally friendly. Therefore, Kelawarapitiya built an LNG power plant.
But at that time we did not have the resources to run the Kelawarapitiya power plant on LNG. Therefore, a power plant was built to convert it to LNG.
If such a power plant were to be built today it would cost US $ 225 million.
Meanwhile, New Fortress Energy proposed to the government that if they are given 60 percent of the government’s stake of Yugadhavi plant in Kerawalapitiya, they will pay $ 250 million for this investment. That’s more than the money to build a new power plant. But the governments said we could not give 60 percent, we would give 40 percent. After a lengthy conversation with the finance minister, they agreed to buy 40 percent of the shares for $ 250 million. The other is that this 40 percent is given for 15 years. This agreement is to transfer these shares to the Ceylon Electricity Board after 15 years.
They are coming for an investment of $ 250 billion. Only 40 percent of the power plant comes under that agreement. That 40 percent will be returned after 15 years. This is the situation with regard to the Yugadanavi power plant.
According to the current power map, if there is not to be an energy crisis by 2020, 1,200 megawatts will have to be added to the power grid. But the previous good governance government had not added a single megawatt to the new system.
Right now we have to be in a big energy crisis. But due to the Covid situation, the growth in energy demand fell by 5.5 percent to 3 percent. In addition, it rained continuously for two years. We were able to use more hydropower. But when the country returns to normal and investment opportunities arise, we cannot provide electricity.
At present it costs 19 rupees per unit when we run on oil. If it is LNG it is 10 rupees per unit. Maximum 11. Cost reduction by 50 percent. Electricity bills can be reduced by 20 percent. Energy can be provided at a lower cost.
We have to make decisions to move forward as a country. We saw how Bangladesh went forward. Labor costs as well as energy costs are high in our country. Labor costs cannot be reduced. The only solution is to reduce energy. That’s what we’re going to do.” Kariyawasam said
