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Hong Kong energy plant bidder to pump billions into Sri Lankan LNG terminal

Friday, September 06, 2013

Hong Kong firm Energy World International, one of the bidders for the 360 megawatt energy plant project in Jamaica, has been granted approval to establish a liquefied natural gas (LNG) terminal and power plant in Sri Lanka which may represent up to US$1.35 billion in investment, according to reports.

News reports out of Sri Lanka say Cabinet gave the approval last month for Energy World to establish the LNG Hub Terminal in the Southern Port.

"The LNG terminal will export to the region and supply compressed natural gas for transport vehicles and ships," according to Lanka Business Online.

According to the report, Energy World has also proposed the building of 1,200 megawatts of LNG power plants, subject to state-run Ceylon Electricity Board agreeing to buy power.

It's part of a strategic plan — 'Vision2020' — to make the Indian Ocean island the logistics hub in the region.

Sri Lanka last month opened its expanded Colombo port, a US$400-million project aimed at allowing a new, bigger generation of cargo vessels to dock. The project will enable the port to double its current capacity by accepting mega-cargo ships that hold as many as 18,000 shipping containers to enter the port, helping to reduce freight rates and making Sri Lanka a more attractive port of call, says The Associated Press.

The port's capacity will eventually be increased from the current five million containers to 12 million containers per year, according to the Sri Lanka Ports Authority.

Energy World has been the centre of controversy in Jamaica over its late bid to build the 360-megawatt energy plant this year, with Opposition spokesman on industry, commerce and energy, Gregory Mair describing the handling of the late bid as "highly irregular".