4 November 2022 06:45 am
The government has put on hold the proposed investment with the United States’ New Fortress Energy for LNG (Liquefied Natural Gas) supply, Daily Mirror learns .
The investment project ran into controversy after a section of the Cabinet of the previous Gotabaya Rajapaksa government challenged the constitutionality of the Cabinet decision secured by then Finance Minister Basil Rajapaksa to strike the deal. However, the Supreme Court dismissed the petitions.
New Fortress Energy Inc. (NASDAQ: NFE), a company of the United States involved in LNG power generation, announced last year that it executed a definitive agreement for New Fortress’ investment in West Coast Power Limited (“WCP”), the owner of the 310 MW Yugadanavi Power Plant based in Colombo, along with the rights to develop a new LNG Terminal off the coast of Colombo.
As part of the transaction, New Fortress will have gas supply rights to the Kerawalapitya Power Complex, where 310 MW of power is operational today and an additional 700 MW scheduled to be built, of which 350 MW is scheduled to be operational by 2023,” the company said in a statement posted on its website.
However, the new government had decided to review the investment proposal with the company.
Asked for a comment on the matter, State Minister of Finance Shehan Semasinghe said he could only say the project is reviewed in conformity with the policy of the government led by President Ranil Wickremesinghe.
“The new government has not proceeded with discussions on the project,” he said.(Kelum Bandara)