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| Energy Minister Udaya Gammanpila
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Adding a new spin to the controversy surrounding the deal with US-based New Fortress Energy, subject Minister Udaya Gammanpila yesterday slammed the Government over the move, and raised issues of lack of transparency,
the likely monopoly it creates and threat it poses to the energy security of the country.
“I am concerned that no officials from the Ministry, who are the experts on the subject, were represented in any of the said committees that signed the agreement – which too occurred at a time when the tenders were called for the same,” Gammanpila told a media briefing yesterday.
On September 22, US-listed global energy infrastructure company New Fortress Energy Inc. and the Government jointly announced that they had executed a definitive agreement for New Fortress’ investment in West Coast Power Ltd. (WCP), the owner of the 310 MW Yugadanavi Power Plant, along with the rights to develop a new LNG Terminal off the coast of Colombo.
As per the Minister, the issue at hand is not the transfer of a 40% stake in Yugadanavi to New Fortress Energy, but the monopoly the US firm would then have over the supply of gas to the country for a period of five years.
“This is an issue about energy security,” he pointed out.
New Fortress Energy will commence its LNG operations from 2023 through to 2028.
Gammanpila said he had given two observation reports to the Cabinet, and that another would be made soon.
The Minister raised concerns over the LNG supply being controlled by a foreign nation, which he said could have a serious negative impact on oil exploration efforts in Sri Lanka.
“Allowing a US-based firm to have a monopoly on the LNG supply till 2028 would be a serious concern in terms of attracting investors to explore for gas in the Mannar basin,” he added.
In addition, the Minister assured that the Government had secured uninterrupted supply of petrol till January 2022, and diesel till November.
Noting that the Ceylon Petroleum Corporation (CPC) was the main consumer of crude oil, Gammanpila said that the people should not be unnecessarily disturbed by speculation, insisting that the Government had taken steps to face any challenges.
“There is a fuel shortage in the UK, but not here in Sri Lanka,” he said.
The Energy Minister also assured that he would not do anything that was against his conscience, adding that he would continue to do so, even if it costs him political mileage.
Responding to a question as to why as a ruling party MP he was voicing his concerns, Gammanpila said that they operate inside the Government, similar to a watchdog in a house.
“If there is danger, the dog barks. But misunderstanding the barking and chasing the dog away means risking the security of the house,” he quipped.
