GAIL, NTPC and Petronet LNG aim to regain ground in Sri Lanka

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 Indianbuilt 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 baby steps to work out an alternative energy package with a

substantial takeaway in terms of air quality management.

Sri Lanka recently informed India that it was cancelling the proposal for the 500mw coal-fired power

plant due to public protests 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

India's largest power producer NTPC in joint venture with Ceylon Po wer Board at Sampur 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. The broad contours of the

package go like this: 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.

Sources aware of the deve lopment said a team of executives from the companies and government

officials was in Sri Lanka to get an idea about the project dynamics and prospects. Admittedly , the

proposal is in a nascent stage and a lot of distance remains to be covered since it involves international

relations.

Sources aware of the deve lopment said a team of executives from the companies and government

officials was in Sri Lanka to get an idea about the project dynamics and prospects. Admittedly , the

proposal is in a nascent stage and a lot of distance remains to be covered since it involves international

relations.

The proposal for helping Sri Lanka set up CNG network in Colombo and other key cities could be a

clincher and add to the scale of the LNG project, essential for economic viability . 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 IndianOil,

operates fuel retail network and tank farms in that country .

NGS INDIA