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Gaining Steam

Shell Global, pitching for Liquefied Natural Gas (LNG) for Sri Lanka’s long-term fuel needs, met with local officials and a vocal coal lobby while in Colombo last week.
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Shell Global, pitching for Liquefied Natural Gas (LNG) for Sri Lanka’s long-term fuel needs, met with local officials and a vocal coal lobby while in Colombo last week.

Re-opening an old debate, the team has been promoting the cleaner fuel that could see savings of about US$ 100 mn a year over costly diesels, based on early feasibility studies.

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The proposed project mixes new capacity with conversion of base load combined cycle plants to run on gas, also freeing up the pressure on existing hydro reserves.

But a minimum of 1500 MW is needed for tariffs to fall to levels comparable to that of coal, with options of converting 720 MW at Kelanitissa and Kerawalapitiya to LNG.

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“We are exploring it for development in parallel or as a fall back to coal, not instead of it,” Business Development Manager at Shell Global Solutions, Rupert Taylor told LBO.

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The team met with the government’s National Energy council and the Ceylon Electricity Board while in Colombo to discuss how it might fall int

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