Lyndon LNG. LNG, Lanka Aloka, Sri Lanka, Hereth Nawaratne, CEB, kerawalapitya, colombo

Development of Integrated LNG Import & Power Plant

Development of Integrated LNG Import facility (1mtpa) & 488MW LNG Power Plant 

Project Location: 

Kerawalapitiya, Sri Lanka

Lead Developer: 

Lyndon Energy (Lyndon LNG)

Project Description:

Lanka Aloka AB (Pvt) Limited is a Sri Lankan registered company and is the special purpose vehicle (SPV) that has been created for the development of a 488MW Combined Cycle Gas Turbine (CCGT) electricity generation project.  The project is to be located in the historical High Security Zone at Kerawalapitiya, approximately 15 kilometres to the north of Colombo, Sri Lanka.   Lyndon Energy teamed up with local partner in 2017 to realise the distinctive project that has all key Cabinet approvals in place dating back to circa. 2008. 

The 488MW – Stage 1 of the power project will add 20% additional capacity to the current Sri Lankan electricity generation capability.  This plant will be the cleanest and lowest priced thermal power producer amongst the current Independent Power Producers (“IPPs”) contracted to the Ceylon Electricity Board (“CEB”).

The plant will be fuelled by Liquid Natural Gas (LNG) and the project will include the development of an LNG import scheme that will be premised on a nominal 1mtpa Floating Storage Re-gasification Unit (FSRU).  This will be the first LNG import facility developed in Sri Lanka.

With the LNG supply chain in place, it is planned to provide LNG fuel to the integrated 488MW CCGT that forms part of the project scope, together with fuel to the recently sanctioned new build 300MW project at Kerawalapitya being developed by Lakdhanavi and also the existing Yugadanvi 300MW power plant that currently runs on diesel due to LNG not being available.  In aggregate this will create a nominal demand of 1mtpa for LNG and will significantly reduce fuel costs and CO2 emissions through fuel switching from diesel to gas.

Lyndon Energy Role:

Lyndon Energy is the lead developer responsible assembling the international partners to invest in and execute the project and for the commercial and technical aspects of the project development.

Lyndon Energy Team:

The London office leads the Lyndon LNG team on all commercial and financial issues, supported by the New York team and Lyndon LNG engineers from the UK and Australia on technical issues respectively.

LNG, sri lanka, lanka aloka, fsru, kerawalapitya, herath nawaratne, lanka aloka pvt ltd

Our References

Since 2014, Lyndon Energy has embarked on a strategy of "capturing LNG markets ahead of supply" through the development of LNG value chains using Floating Storage Regasification Unit (FSRU) technology coupled with gas fired power generation, leveraging the long supply of LNG available globally.

The first LNG import scheme developed by the company was a 3-mtpa project in Myanmar where Lyndon Energy originated and negotiated terms with three major LNG suppliers (producers) for a 15 year term and a Charter Party Agreement (CPA) for the selected FSRU for 25-years with highly advantaged terms.

Lyndon LNG. LNG, Lanka Aloka, Sri Lanka, Hereth Nawaratne, CEB, kerawalapitya, colombo

Our Experience

The Lyndon Development team has significant experience in the origination, negotiation, review, execution and operational management of Natural Gas (NG) and LNG contracts having worked in the space for more than a combined 50 years.  Lyndon works with major International Oil Companies (IOCs) and National Oil Companies (NOC's), in addition to LNG traders across all geographies worldwide.   Members of the team have all operated at a senior levels in respected Oil and Gas groups including; BP, Centrica, Morgan Stanley and Glencore. 

With gas markets in Europe unlikely to grow significantly, Lyndon Energy believes that incremental sales of LNG can only be achieved via the creation of new markets (primarily in Asia).  Fuel switching from more carbon intensive fuels, e.g. coal and diesel, will be the primary driver with China being the biggest target market switching from coal to LNG for both power and mobility (road transport and shipping).  China has already surpassed Japan and Korea to become the largest LNG consumer globally.

Our Market Focus

With gas markets in Europe unlikely to grow significantly, Lyndon Energy believes that incremental sales of LNG can only be achieved via the creation of new markets (primarily in Asia).  Fuel switching from more carbon intensive fuels, e.g. coal and diesel, will be the primary driver with China being the biggest target market switching from coal to LNG for both power and mobility (road transport and shipping).  China has already surpassed Japan and Korea to become the largest LNG consumer globally.

Lyndon LNG. LNG, Lanka Aloka, Sri Lanka, Hereth Nawaratne, CEB, kerawalapitya, colombo

Consultancy

Lyndon works closely with clients to provide fresh and independent insights and perspectives to help facilitate the execution of their strategic objectives.  Our role is often to augment the in house resources available to help manage when negotiations, re-negotiations and disputes reach a critical point to achieve the best commercial outcome for our Client. Defending or advancing Force Majeure claims is a particular area of expertise. 

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