GAIL, NTPC and Petronet LNG look for regaining Sri Lanka footprints

THREE Indian energy companies have initiated a move to make a joint bid for regaining lost ground in Sri Lanka after Colombo dumped plans for an Indian-built coal-fired power plant in the port city of Trincomalee. State-run gas utility GAIL, generation utility NTPC and Petronet LNG Ltd -a private company promoted by public sector oil firms -have taken steps to work out an...
alternative energy package with a substantial takeaway in terms of air quality management, says a media report.
Sri Lanka recently informed India that it was cancelling the proposal for the 500 MW coal-fired power plant due to public outcry over pollution and wants to set up a liquid gas-based project, considered this is least polluting.
The power plant deal has been hanging fire for several years. The 500-MW station was to be built by NTPC in joint venture with a Lanka entity in Trincomalee. The alternative package being prepared by the three Indian energy firms aims at leveraging their individual core competence to address Sri Lanka's concerns.
According to the package, Petronet LNG would set up a gas import terminal. GAIL would source the fuel and help set up CNG network such as in Delhi and Mumbai, while NTPC would build and operate the power plant.
A team of executives from the PSUs and government officials was in Sri Lanka to get an idea about the project dynamics and prospects.
Both GAIL and Petronet, India's largest liquid gas importer, have tied up substantial quantities of liquid gas, which can be shipped to fuel the power station and CNG networks.
NTPC is India's largest power producer and has expertise in operating power plants based on coal, gas and hydro. If the plan goes through it would be a second energy project in Sri Lanka. IOC Lanka, a subsidiary of state-owned refiner-retailer Indian Oil, operates fuel retail network and tank farms in that country.