????? ??????? 22/04/2018
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Ada Dearna: විදුලි ඉංජිනේරුවන් මේ නගන හඩට මාත් එකඟයි… -අමාත්ය රංජිත් සියඹලාපිටිය මැති තුමා
Ada Derana News: 21/04/2018 6:55PM
Economynext: Sri Lanka’s coal power bounty has ended; costs shooting up: Union
ECONOMYNEXT – Sri Lanka’s power generation costs are rapidly outpacing selling prices and a bounty from a 900 MegaWatt coal plant had now run out, and there is no relief on the horizon, executives at the island’s power utility warned.
“The last 300 Mega Watt plant was built in Norochcholai in 2014,” Saumya Kumarawadu, President of the Ceylon Electricity Board Engineers Union said.
“After that no low cost power plant has been built. So costs can only go up.”
Sri Lanka’s President Maithripala Sirisena cancelled a 500 MW coal plant in Sampur in Trincomalee in 2015 where land was cleared and the plant was on the verge of being tendered after delays for which the CEB itself was responsible.
Coal Bounty
With the help of the coal plant CEB’s average cost per unit sold plunged from 23.6 rupees a kilowatt hour (unit) in 2012 to 15.07 rupees a unit in 2015.
“This is how a 25 percent reduction in power prices was given in 2015 for the first time in the history,” Manawadu said.
“But now all new plants since then are producing power at higher prices. So costs can only go up.”
Average costs per unit sold (which includes all overheads of the CEB) had gone up to 18.09 rupees a unit in 2016 and 21.32 rupees in 2017 with higher cost liquid fuel plants being operated.
But the average selling price is now much lower. In 2017, the average selling cost was estimated at 17.54 rupees.
“The average selling cost is now lower than the generation cost,” Manawadu said. “That is why last year the CEB made a 45 billion rupee loss.”
The busting of the rupee by the central bank in a monetary debacle in 2015 and 2016 and preventing the rupee appreciating in 2017 as credit fell, is also inflating the costs of fuel.
When there is a drought, cheap hydropower also falls, adding to the problem.
Sri Lanka avoided power cuts during a drought with the help of the Chinese coal plants, which analysts say may be the highest return physical investment made by Sri Lanka since the Mahaweli hydro power complex.
The Chinese plants have come with some avoidable pollution problems because environmental and religious lobbies blocked a cleaner Japanese funded coal plant originally specified by the CEB.
In 2014 the coal plants produced 3,202 GWh out of a total of 12,357 generated with CEB hydros contributing 3,632.
In 2015 the coal plants produced 4,443 GWh as 13,090 GWh was produced to meet expanding demand with hydro also rising to 4,904GWh, helping CEB finances.
CEB fuel oil power fell from 1,696 GWh to 1,051. Private power fell to 2,690 GWh from 3,882 GWh
In 2016 the coal plants produced 5,047 GWh of energy, while hydro fell to 3,481 and the CEB had to produce 14,149 GWh of energy for the year.
In 2017 coal energy rose a little to 5,103 GWh as total generation rose to 14,671 GWh. Coal plants are now operating at near full capacity with the night load also picking up.
In 2017 CEB hydro generation fell to 3,059 GWh.
CEB’s fuel oil production went up to 2,297 GWh in 2016 and to 2,529 to cope with rising demand.
Private sector power purchases rose to 3,322 GWh in 2016 and to 3,978 GWh in 2017.
“The benefit the country got from coal plants are now over,” says Manawadu. “Now costs can only go up.”
Costs
The savings that a single 300MW coal plant can make runs into tens of billions of rupees a year.
Unlike hydro plants, which operate about 30 percent of the time in a given year which is called plant factor and even less in drought years, a thermal plant can operate about 60 to 80 percent of the time available in a year.
All CEB’s major hydro plants build since inception generated only 3,059 billion units of electricity in 2017. But the three coals plants with 900MW generated 5,103 billion units of energy
CEB engineers union says the utility’s hydro power costs are estimated at about 2.40 rupees per unit and coal at about 7.90 rupees a unit to produce.
Read full article: http://www.economynext.com/Sri_Lanka_s_coal_power_bounty_has_ended;_costs_shooting_up__Union-3-10422-8.html
විදුලි ඉංජිනේරුවන් මැයි 08 වැනිදා සිට අකුරට වැඩ – Hiru News
CEB engineers to “Work-to-rule”
????? ??????? ??? ????? ???? 08 ???? ??? ????? ??? ?????? ??????? ??????????????? ?????? ?? ?? ?????? ???????? ????? ??????.
??????? ???????? ???? ????????? ??????? (20) ??? ????? ??? ?????? ??????? ?????????????? ???? ?????? ????? ??? ??? ????? ?? ???????.
????? ????? ????? ???? ???? ??? ?? ??????? ????????????? ???? 08 ???? ??? ????? ?????? ????? ?? ???? ?????? ???????? ?????? ?????? ?????? ???????? ???? ?? (18) ????? ?????? ?????? ????????? ????? ????.
???? ?????, ???????? ?? ?????????? ?? ????? ??????????? ????????? ?????? ?????? ???? ?????? ??????? ?????? ??????????? ??? ??? (17) ????? ??????????? ??? ??????? ???? ????? ??? ?????? ???????????? ??? ?????? ????? ????? ?? ????.
???????? ????? ???????? ?? ??? ???????? ????? ??????? ??????????? ????????? ??????? ?????? ??? ???????? ?????? ??????? ?? ??? ?? ? ???? ???????? ?????????? ?????????.
CEB engineers to “Work-to-rule”
The engineers’ union of Ceylon Electricity Board says they will launch a “Work-to-rule” campaign from 8th of May.
The Union which had put forward several demands seeking solutions had earlier planned to launch the “work-to-rule” campaign with effect from this Friday.
However, the action has been postponed to 8th of May to avoid the Vesak Week.
However, Power and Renewable Energy Ministry in a statement said yesterday that the CEB engineers’ union had decided to postpone their action after having a discussion with Minister, Ranjith Siyambalapitiya.
The Ministry further said that a Cabinet paper has already prepared with regard to the issues of the engineers.
‘Set up low-cost power plant or face disaster’ CEB engineers to launch work-to-rule campaign – The Island
By Rathindra Kuruwita
The Ceylon Electricity Board (CEB) was expected to incur a loss of Rs 50 billion this year, and the situation would continue for the next six to seven years unless a major low cost (coal-fired) power plant was set up, CEB Engineers’ Union President Saumya Kumarawadu said yesterday.
Kumarawadu said his union would launch a work-to-rule campaign from 08 May as it had failed in its efforts to educate the government officials on the situation and convince them of the need to adopt remedial measures as a national priority.
‘After the Norachcholai Power Plant was built in 2014, the generation cost of one unit of electricity dropped to Rs. 15.07 and the government was able to reduce the electricity bill by 25%. However, Kumarawadu said, since then no low cost thermal power plants had been added to the system, although each year the demand went up by 200 MWS. The cost of one unit of electricity had gone up to Rs 21.32 in 2017. The CEB lost Rs 45 billion that year.”The 15-year delay in commissioning the Norachcholei Power Plant had cost the country Rs. 900 billion and the scrapping of the Sampur Coal Power Plant, at the last moment, had already cost Sri Lanka Rs. 200 billion, Kumarawadu said. The reason for the colossal losses was that the Public Utilities Commission of Sri Lanka (PUCSL) had scrapped the proposed coal-fired power plants from the CEB’s Least Cost Power Generation Expansion Plan (LCLTGEP) 2018- 2037, he added.
“They have discarded our proposals to allow private investors to establish high-cost power plants which will upset the balance we seek in the country’s energy mix,” Kumarawadu said.
The engineers’ union had first decided to start the work-to-rule campaign on April 20, but the launch of the protest had been delayed in view of Vesak, Kumarawadu said. “We want the government to meet four demands. We want the government to approve our LCLTGEP, allocate land and other facilities necessary for the construction low cost coal power plants, devise a proper mechanism to provide a government subsidy for the CEB for providing electricity to customers at a subsidized price and amend the Sri Lanka Electricity Act No 20 of 2009 to minimise ‘unnecessary impediments to the smooth function of CEB.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=183314
විදුලි සේවකයන්ගේ අකුරට වැඩ කිරීම කල් යයි – Mawbima
??.??.?. ????????? ????? ??? (20??) ??????????? ?????? ??????? ???? ????? ??? ?????? ??????? ????????????? ???? ?? 08 ?????? ????? ??? ?????? ????? ?? ?? ?? ?????? ?????? ?????? ???????? ?????.
????? ?????? ????????? ?????? ????? ?????????? ?????? ??? ???????? ?????????? ?????????????? ??? ???????????? ?????? ???????? ?? ??????? ????? ???? ?????? ?????? ?????? ?? ?????? ????? ??? ??? ?????????.
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????? ?? ????? ???????? ?????? ?? ???????? ??? ??????? ?? ??????? ?????? ??? ??? ?????????? ???? ??????? ??????????? ???????? ????? ??????? ???????????? ?????? ?????? ??????? ???????? ???? ???? ??? ??? ????? ???????.
???? ???????? ??????? ???? ?????? ??.??.?. ????? 2018-2037 ????? ?? ???? ??????? ??? ??????? ??? ??? ???????? ?????? ???????? ?????? ?????? ??? ???? ??? ????????? ???? ??????? ???? ?????? ?????? ????? ?? ??????? ?????????????? ??????? ???????.
‘විදුලි බිල වහා අඩු කරනු.. සුත්තරේ මෙන්න..’- විදුලි ඉංජිනේරුවෝ රටට සෙතක් පතා වර්ජනයක් අරඹති..-LankaCnews
??????? ???????? ???? ?? ??????? ???? ???????? ????? ???????? ????? ?????? ??? ???? ?? 08 ?????? ??? ??????? ???????????????? ??????? ????? ?? ??.
??? ?? ????? ?????? ???? ???????? ????? ???????? ????? ?????? ?????? ??? ?? ?????? ???????? ???? ????????.
Read More:
CEB engineers postpone work-to-rule campaign -Times
The Ceylon Electricity Board Engineers’ Union (CEBEU) say they will launch a work-to-rule campaign from May 8. The trade union action was initially scheduled to be launched this Friday (20). However, the union postponed the strike by two weeks following discussions with Power and Renewable Energy Minister Ranjith Siyambalapitiya and Ministry officials yesterday.
The union had earlier warned that such a work-to-rule campaign could cause intermittent power failures and even power cuts throughout the island.
The engineers’ trade union action is being launched over what it says is failure on the part of the Government to resolve a dispute between the CEB and the Public Utilities Commission of Sri Lanka (PUCSL), the power sector regulator, over approving the country’s Least Cost Power Generation Expansion Plan (LCLTGEP). The CEBEU wants the Government to intervene and approve the plan favoured by the CEB.
Last year, the PUCSL approved a plan which does not contain any coal power plants. The CEBEU has maintained that the PUCSL had amended the plan submitted by the CEB and approved its own version, which the union claims is illegal. The regulator denies the charge.
Meanwhile, issuing a statement, the Ministry of Power and Renewable Energy said Minister Ranjith Siyambalapitiya is committed to providing a solution to the issue and some positive steps had already been taken.
http://www.sundaytimes.lk/article/1042273/ceb-engineers-postpone-work-to-rule-campaign
විදුලි ඉංජිනේරුවෝ මැයි 08 සිට අකුරට වැඩ – Dinamina
???????? ??? ??????? ???? ??? ??????? ??????? ?????? ????? ??????? ????? ???????. ????? ??? ???????? ?????? ????
Click to view:
http://epaper.dinamina.lk/art.asp?id=2018/04/19/pg08_4&pt=p&h=
විදුලි ඉංජිනේරුවන් 20 සිට අකුරට වැඩ – LAKBIMA
??? ?????? ?????? ?????? ??????? ???? ???????? ?? ??? ???????? ???? ????, ????? ?? ??????????? ?????? ????? ??????? ???? ?????? ???????? ????? ??? 20 ?????? ??? ????? ??? ?????? ??????? ????? ??????????????? ??????? ???? ????? ?? ??.
?? ?????? ?????? ??? ?????????? ????????? ????? ??????? ????????? ????? ???? ?????? ?? ?????? ?????????? ???? ????? ???????? ?? ????? ???? ??? ?????? ?????? ??????? ????? ???? ???? ??????? ???? ???????? ??????? ???????? ??? ?? ???????? ???????? ??? ???? ?????? ???????? ?????? ?????? ?????? ?????????? ???? ??????? ????.
??? ??? ????? ????? ??? ??????????? ??? ??? ?????? ????? ???? ??? ?? ??? ????? ???? ??? ??????? ????? ?????????????? ??????? ????? ?? ??? ? ???? ???????. ?????? ??????????? ????? ??? ????? ????? ?????????? ??????????? ??? ?? ??????, ?????? ???? ?????? ??????? ?????? ?????? ????????? ???? ???? ?? ?? ?????????? ????, ?????? ????????? ??????? ??????? ??????? ??????? ??? ???? ??? ???.
?????? ?????? ?????? ?????? ??? ??????? ???? ??? ?????? ?????? ???????? ?????????? ???? ?? ????? ?? ? ????, ?? ????? ???? ??????? ????? ?????? ???? ??????? ?????? ?????? ??? ???. ???? ???????? ??????? ????? ?????? ???? ???????? ?????? ?????? ?? ???? ?? ?????????? ???? ?????????? ???????.
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https://www.lakbima.lk/index.php/%E0%B6%91%E0%B7%83%E0%B7%90%E0%B6%B1%E0%B7%92%E0%B6%B1%E0%B7%8A-%E0%B6%B4%E0%B7%94%E0%B7%80%E0%B6%AD%E0%B7%8A/10511-%E0%B7%80%E0%B7%92%E0%B6%AF%E0%B7%94%E0%B6%BD%E0%B7%92-%E0%B6%89%E0%B6%82%E0%B6%A2%E0%B7%92%E0%B6%B1%E0%B7%9A%E0%B6%BB%E0%B7%94%E0%B7%80%E0%B6%B1%E0%B7%8A-20-%E0%B7%83%E0%B7%92%E0%B6%A7-%E0%B6%85%E0%B6%9A%E0%B7%94%E0%B6%BB%E0%B6%A7-%E0%B7%80%E0%B7%90%E0%B6%A9
ලංවිම ඉංජිනේරු වර්ජනය කල්යයි -Ada.lk
??? ????????? ???? ??????? ???? ?? ?? 20 ?????? ??? ??????????? ?????? ??????? ?? ??????? ????? ????????????? ???? 08 ?????? ????? ??????? ?? ???????? ????? ???????? ????? ????? ????.
20 ??????? ??? ?????? ??? ?????? ??????? ??????????? ???????? ?????? ?? ?? 20 ?????? ??? ????? ??? ?????? ??????? ??????????????? ????? ?????? ??????? ?? ???? ??? ?? ?????? ?????? ?????? ????? ???? ?? (18??) ?????? ?????? ??????????? ????? ????.
?? ???? ???? 08 ?????? ??? 4.15 ??? ????? ??? ?????? ????????????? ??????????? ??? ??? ????? ???? ???????.
????? ????? ???????? ????? ???????? ??????? ??????????? ?? ?????? ??? ????????? ??????? ???? ??????? ????????????? ????????? ?????? ?? ??? ??? ????? ????.
http://www.ada.lk/article/323309/%E0%B6%BD%E0%B6%82%E0%B7%80%E0%B7%92%E0%B6%B8-%E0%B6%89%E0%B6%82%E0%B6%A2%E0%B7%92%E0%B6%B1%E0%B7%9A%E0%B6%BB%E0%B7%94-%E0%B7%80%E0%B6%BB%E0%B7%8A%E0%B6%A2%E0%B6%B1%E0%B6%BA-%E0%B6%9A%E0%B6%BD%E0%B7%8A%E0%B6%BA%E0%B6%BA%E0%B7%92
ලංවිම අකුරට වැඩ කරනවාද නැද්ද තීරණය අද – මව්බිම
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??? ??????? ????????????? ?? ???????? ?? ??? ?????? ??? ??????? ????? ??????? ???????? ??? (17??) ???????? ?? ?????????? ??????? ????? ?????? ??????????? ???? ?? ?????????? ?????? ???? ????? ????? ???? ??????? ???? ????????? ???? ??????????? ?????? ?? ???? ??? ?????????.
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??? ?????? ?????? ???? ?? ??????? ????? ???????????? ???????? ?? ??????? ??? ?????? ??????? ???? ???????? ??????? ???? ???????? ?? ?????? ??? ???????? ?????? ????? ??? ?? ??????? ????????????? ????? ????.
???? ? ???? ????????? ????? ????? ???? ?????? ????????? ???????? ??????????? ???? ???? ? ?????? ?????????????? ?????? ???? ????? ?? ??????? ?????????????? ???? ??? ??????? ???? ?? ?????? ?????????? ??????? ????.
http://www.mawbima.lk/print20170621MB20171230.php?id=12322
Power plant construction delays cost Rs 26B in 2017 – Ceylon Today
Sri Lanka’s cost of emergency power increased by 62% year-on-year in 2017 to Rs 26,305 million, due to delays in implementing power plants as mentioned in the least-cost long term generation plan, a top power sector official told Ceylon FT.
The cost of emergency power purchases stood at Rs 319 million in 2015 and Rs 16,263 million in 2016 respectively.
The electricity sector regulator, the Public Utilities Commission of Sri Lanka (PUCSL) – who holds the legal power to amend and approve the Ceylon Electricity Board’s generation plan – gave its consent for the latest least-cost long-term generation plan for 2018-2037 on 19 July 2017.
The PUCSL has communicated a number of times to the Ceylon Electricity Board, the State-owned electricity generator and distributor, to implement the approved generation plan to ensure a continuous electricity supply to Sri Lanka, which CEB has failed to do. This has led to buying electricity from private suppliers, ultimately paid for by taxpayers, adding another burden to their shoulders.
The Ministry of Power and Energy last week decided to extend the purchasing of expensive thermal power, as the country had four seasons of back-to-back dry spells that exhausted reservoirs. The Power Purchase Agreement (PPA) with Ace Power Embilipitiya (Pvt) Limited, which is a fully-owned subsidiary of the Aitken Spence group that owns a 100MW thermal power plant, initially lapsed in 2015.
CEB was questioned by the regulator for its rationale to buy high-cost thermal power as a contingency, as this would add huge costs to the nation.
However, the Government said, “Since the power plants constructed presently are due for completion between 2019 and 2022, the need has arisen for a temporary programme to get electricity until 2020.”
The Government awarded two tenders in March to Aggreko International Projects Limited and a Hayleys Group energy producer under emergency power deals to purchase 100MW of power.
The total expected financial loss due to implementation delays of 2018-2020 plant schedule in the long-term generation expansion plan is Rs 50.62 billion. Financial losses due further delays beyond what is forecasted will cost Sri Lanka Rs 3.43 billion each month, PUCSL said in its report, ‘Financial Impact of Delay in Implementation of Power Plants’.
http://www.ceylontoday.lk/site-api/share/806/news/view
Sri Lanka power utility engineers delay industrial action till May 08
ECONOMYNEXT – Engineers at Sri Lanka’s state-run Ceylon Electricity Board said they were delaying industrial action till May 08, until a Buddhist holiday period was over.
CEBEU had earlier given notice to the management of the CEB and the power ministry that they would work-to-rule from April 20.
“We had a number of requests not to work-to-rule from April 20, because Vesak week starts on April 30,” CEBEU President Saumya Kumarawadu told reporters.
“If we start work-to-rule power outages cannot be prevented. So the Union decided yesterday to delay action till May 08.”
CEBEU says the regulator had delayed approved of their latest power plan and the cancellation of a coal plant in 2015 by the President had pushed the country into a crisis.
Even earlier plants in the CEB’s approved power plan was delayed. (Colombo/Ma18/2018)
http://www.economynext.com/Sri_Lanka_power_utility_engineers_delay_industrial_action_till_May_08-3-10400-8.html
කැබිනට් වර්ජන, සංශෝධන අස්සේ නායකයෝ පඹගාලක – Lankadeepa
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…???? ???? ???? ????????. ?????? ?????? ???????? ??????? ??????? 30 ?? ??????.?? ??? ??????? ????? ???? ???.???.??. ???? ??????????? ??????? ???????? ????????.
????????? ??????? ?????? ??? ??????????? ????? ??????? ???????? ?? ????.???? ??????? ???? ????? ??????? ??????? ??????? ?? ???? ????? ??????. ??????????? ??????? ????????? ? ?? ????????? ??????? ?? ??????.
?? ?????????? ??????? ????? ?????????? ????????? ??? ????????? ????? ?????? ????. ?????? ???? ????????? ???? ?? ??? ??????? ??????? ???????? ?????? ??? ??? ??? ???? ???????….
Sri Lanka warned against LNG ‘take-or-pay’ deal; call for competitive bidding – EconomyNext
ECONOMYNEXT – Sri Lanka’s power engineers warned that a government-to-government deal for a ‘free LNG terminal’ was a ploy by developers to eliminate competitive bidding and secure a long-term liquefied natural gas procurement deal.
Sri Lanka’s cabinet has already approved a controversial unsolicited proposal brought forward by the Ministry of Development Strategies and International Trade for Indian and Japanese companies to set up an LNG terminal by giving the firm the right to buy fuel for up to 20 years.
Unsolicited Take-or-Pay
The unsolicited terminals were to be built on the basis of ‘take-or-pay’ where the Ceylon Electricity Board would be committed to buy LNG or pay for unused volumes, even when rains come.
Engineers at the Ceylon Electricity Board said in a letter to the government and members of the parliament that the unsolicited deal appeared to have been done without consulting the Ministry of Power and Energy.
The two coalition partners of the current administration strengthened the case for LNG soon after coming to power with President Maithripala Sirisena cancelling a planned coal power plant which was close to being built.
The regulator also pushed up costs of coal by coupling a pump storage plant to claim that LNG was cheaper, as critics cried foul.
Several unsolicited LNG plants were then pushed by interested parties, on a ‘government-to-government’ basis though only one party was chosen.
Around the time there was greater acrimony inside the coalition and charges against an economic committee that gave the nod to the deal were ratcheted up, according to observers.
By-passing competitive procurement
An amendment to the electricity act brought to section 43 of the electricity act in 2013 which permitted ‘government-to-government’ deals is being used to by-pass competitive bidding, critics say.
The CEB engineers said there were enough private investors ready to set up LNG terminals and competitive bidding should be used to procure the terminal.
“In an occasion where there are a lot of investors keen on investing in LNG power plants and supply of LNG, most appropriate way of implementing such proposals is through competitive bidding,” the engineers union wrote in a letter to the President, Prime Minister and members of parliament.
“If there are concessionary government to government loan commitments, it is the responsibility of the government to channel those funds to other sectors which cannot attract investments.”
The deal approved by the cabinet as reported publicly involves a terminal with 2.7 million tonnes per annum (MTPA), where the developer will have be paid a penalty for any unused capacity by the CEB.
Hedging Deal
CEB engineers warn that the penalties from the ‘take-or-pay’ LNG deal may dwarf those of oil-hedges that went wrong in 2008 forcing state-run Ceylon Petroleum Corporation to buy oil at high prices.
“When there are unfavorable terms like this in a twenty year contact, it is very difficult to avoid the country being pushed into an economic crisis,” the CEBEU warned.
“The loss incurred by a contract like this can be thousand times higher than that of the recent hedging deal signed by the CPC for fuel purchase.”
The CEBEU said the LNG requirement will not exceed 0.6 MTPA
LNG requirement of the country won’t exceed 0.6 MTPA for next ten years with planned new LNG plants and conversion of exiting thermal plants to LNG.
“This LNG demand can vary from 0.3 MTPA under very wet condition to 0.8MTPA under extreme dry conditions in the country,” the Union said.
“Under these circumstances, we also wish to know about the experts who recommended purchasing such a huge volume of LNG like 2.7 MPTA for a period of twenty years.”
Current LNG prices however are much lower than before the commodities bubble broke in 2008/2009 and the gap with coal has also narrowed.
There is also speculation that the attempt to push Sri Lanka to import LNG through take-or-pay deals with LNG importing countries may also be triggered by a need to pass on losses from long term contracts made before LNG prices fell.
Red Light
CEB engineers wrote that all unsolicited ‘take-or-pay’ deals involved the following characteristics.
1.Great reluctance for competitive bidding.
2. Bringing in investment proposals so that they get the maximum benefits (to the promoters) ignoring the requirements of the country.
3. Investment proposals being brought forward by private companies under the label of government to government concessionary contracts.
4. Establishment of joint venture companies allocating of a meagre share for Sri Lanka in those companies, in order to escape from competitive bidding procedures and other relevant laws & regulations.
Analysts say even Power and Energy Ministry lacks the capacity to properly evaluate the complexity of the proposals and contracts involved. (Colombo/Mar10/2018)
CEB union backs LNG for power, but warns of pitfalls in unsolicited contracts -CT
“The Ceylon Electricity Board Engineers’ Union (CEBEU) has urged the Government to draw up a strategic plan to use liquefied natural gas (LNG) in meeting the country’s energy demand instead of adopting ad hoc measures from time to time.
In a letter to the President, the Prime Minister, Ministers and MPs, the union says that it is “high time” to choose LNG as a source of energy in the electricity general mix of the country. They point out that the CEB’s Least Cost Long-Term Generation Expansion Plan 2018-2037 calls for LNG power plants with a total capacity of 1,500 megawatts to be added to the system.”
Read More: http://www.sundaytimes.lk/180401/news/ceb-union-backs-lng-for-power-but-warns-of-pitfalls-in-unsolicited-contracts-288391.html
FSRU for LNG taking country into econ crisis – CT
By Niranjala Ariyawansha
Sri Lanka is heading into a severe economic crisis due to the Government’s decision to establish a Floating Storage Regasification Unit (FSRU), for a massive supply of 2.7 million tons of Liquefied Natural Gas (LNG) per annum without calling for open tenders, energy experts have warned.
They emphasize that if this unsolicited decision is implemented, the country will have to incur a loss, thousand times more……than the loss it had to face due to the notorious Hedging deal.
The Government has signed Memorandums of Understanding with both, India and Japan to supply Sri Lanka’s requirement of Liquefied Natural Gas for the next 20 years.
According to these Memorandums of Understanding, India will hold 47.5 per cent of the shares in the Floating Storage Regasification Unit, which is being constructed in Kerawalapitiya, while Japan will hold 37.5 per cent and Sri Lanka the balance 15.
Meanwhile, the Ceylon Electricity Board Engineers’ Union (CEBEU) has requested the Government to focus its attention on this serious decision which cannot be reversed. They had sent a letter regarding this issue, on 20 March, to the President and all Parliamentarians.
The letter states: “Unlike diesel or coal, LNG cannot be purchased in varying quantities depending on the time to time requirement and also cannot be easily stored. Due to that, the LNG supply chain depends on very complex technical trade constraints. In these proposals, including the Indo – Japanese proposal, contracts are expected to be signed for the purchase of a minimum quantity of LNG per annum for a term as long as 20 years (Take or Pay Contracts).
The nature of such contracts is that if you fail to buy the minimum quantity agreed in the contract, you still have to pay for the total quantity. When there are unfavourable terms like this in a twenty-year contract, it is very difficult to avoid the country being pushed into an economic crisis.”
Under these circumstances, they have further stressed in their letter, “We request that arrangements be made to formulate a strategic plan on the supply and use of LNG with the assistance of a group comprising experienced local and foreign experts in this field and to approve proposals for supply of LNG, LNG terminals and LNG power plants only if they are in conformity with the above plan and selected through competitive bidding.”
They point out that to operate the Thermal power plants, which work on diesel and are located close to Colombo, using LNG and when considering that the LNG power plants, proposed by the Ceylon Electricity Board, in their Long-Term Power Generation Plan, the country only needs 0.6 million tons of LNG for a year.
They have calculated that it is only such a quantity that will be required for the entire period of the forthcoming 10 years as well.
However, during a year when there is good rainfalls, this requirement will fall to 0.3 million tons. Similarly, in a year when dry weather prevails it can vary and increase up to 0.8 million tons, they point out.
While the circumstances are thus, they ask who those experts were who recommended that such a massive supply, of up to 2.7 million tons is required for this country.
The CEB and the Ceylon Petroleum Corporation had both expressed their opposition to creating such an extensive Floating Storage Regasification Unit to supply energy from Sri Lanka to a country such as India.
The CEBEU further emphasized, in their letter, “The Government’s attention must be focused on possible threats to national security when allowing a company of Indian origin to control the supply of LNG for generation of a larger share of the country’s electricity demand.”
They also stress the fact that, prior to making this decision, the Government had not taken into consideration that the main buyers of LNG would be the CEB, the Ministry of Power and Renewable Energy or the Ministry of Petroleum Resources Development.
The letter finally states that in an instance where there are a lot of investors keen on investing in LNG power plants and the supply of LNG, the most appropriate way of implementing such proposals, is through competitive bidding. If there are concessionary Government to Government loan commitments, it is the responsibility of the Government to channel those funds to other sectors which cannot attract investments.
http://www.ceylontoday.lk/print-edition/2/print-more/1883