Parliament oversight committee calls for Sahasdhanavi LNG power project price revision

Friday, 29 August 2025 03:32 - - {{hitsCtrl.values.hits}}

The Parliament Secretariat yesterday said that the Sectoral Oversight Committee on Infrastructure and Strategic Development called for a revision of the prices approved for the Kerawalapitiya Sahasdhanavi Liquefied Natural Gas (LNG) Power Plant to reflect current market conditions.

The Committee instructed the Power and Energy Ministry to update the Cabinet on the latest cost estimates, as the original prices were based on fuel costs and foreign exchange rates from 2021, when the procurement process began.

Ceylon Electricity Board (CEB) officials said the 350 MW LNG project was awarded in 2023 following Cabinet approval in 2020 and an international competitive bidding process.

The Committee also questioned delays at the Sobadhanavi Power Plant, which was designed to run on both LNG and diesel but continues to operate only on diesel due to the absence of an LNG supply agreement. Officials said LNG supply requires a separate procurement process involving a Floating Storage Regasification Unit (FSRU) system.

The Committee urged authorities to accelerate LNG procurement and instructed officials to ensure the Sahasdhanavi plant, scheduled to begin operations in late 2027, uses LNG no later than 2028, as directed by the President. A status report on pricing, procurement, and project timelines must be submitted within two weeks.

The meeting, held on Monday and chaired by MP S.M. Marikkar, was attended by Opposition Leader Sajith Premadasa, MPs Nalin Bandara and Jagath Vithana, and officials from the Ministry, the CEB, and the Public Utilities Commission of Sri Lanka (PUCSL).