Under a definitive agreement with the Sri Lankan Government, New Fortress Energy will take a stake in the Yugadanavi Power Plant and develop a new LNG import terminal off the coast of Colombo
As part of the transaction, New Fortress will have gas supply rights to the 310-MW Kerawalapitya Power Complex, which could grow to 700 MW under current plans; 350 MW is scheduled to be operational by 2023.
NASDAQ-listed New Fortress will acquire a 40% interest in West Coast Power Limited, owner of the Yugadanavi Power Plant, and plans to build an offshore LNG receiving, storage and regasification terminal located off the coast of Colombo. New Fortress will initially provide an estimated 4.5M litres of LNG ( about 35,000 MMBtu) per day to Sri Lankan Government, with the expectation of significant growth as new power plants become operational.
The 310-MW Yugadanavi Power Plant currently has a long-term power purchase agreement to provide electricity to the national grid that extends through 2035. This power plant consists of General Electric turbines and is configured to run on natural gas in combined cycle.
“This is a significant milestone for Sri Lanka’s transition to cleaner fuels and more reliable, affordable power,” said New Fortress Energy chairman and chief executive Wes Edens.
The Kerawalapitya Power Complex is the foundation of the baseload power that serves the country’s population of 22M people. The terminal is expected to begin operations in 2023.
Over the last year, New Fortress Energy has experienced a significant growth spurt. An exporter of LNG to the Caribbean for the last five years, New Fortress Energy’s holdings cover floating LNG production, small-scale LNG production and storage, gas-fired power projects, a fleet of LNG carrriers and floating storage and regasification units (FSRUs).
In April, it completed the acquisition of Hygo Energy Transition, a joint venture of Golar LNG Ltd and Stonepeak Infrastructure Fund II Cayman, to expand its gas-to-power holdings and FSRU terminal interests in Brazil.
Additionally, it acquired Golar LNG Partners, adding a global shipping fleet of seven FSRUs and six LNG carriers and a 50% interest in Trains 1 and 2 of the floating LNG vessel Hilli Episeyo.
Among the FSRUs operated by Golar LNG is Golar Freeze, which serves as an LNG import terminal at New Fortress Energy’s Old Harbour Facility in Jamaica. The offshore facility supplies LNG to the island’s 190-MW Old Harbour Power Plant and 150-MW Jamalco Co-Generation Power Plant. A converted Moss-type LNG carrier, the FSRU Golar Freeze has a storage capacity of 125,000 m3 with the capability to regasify 4.9 bcm of LNG per year.
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