JVP files writ application against New Fortress deal| MENAFN.COM

Friday, 30 September 2022 12:28 GMT

JVP files writ application against New Fortress deal

(MENAFN- Colombo Gazette) The Janatha Vimukthi Peramuna (JVP) has filed a writ application in court against the deal between the Government and New Fortress Energy.

The writ application was filed in the Court of Appeal against moves by the Government to transfer shares of the Yugadhanavi Power Plant to the US-based company.

US based New Fortress Energy and the Sri Lankan Government had recently signed the controversial deal.

New Fortress Energy said that they had executed a definitive agreement for New Fortress' investment in West Coast Power Limited (“WCP”), the owner of the 310 MW Yugadanavi Power Plant based in Kerawalapitiya, along with the rights to develop a new LNG Terminal off the coast of Colombo.

As part of the transaction, New Fortress said it will have gas supply rights to the Kerawalapitya Power Complex, where 310 MW of power is operational today and an additional 700 MW scheduled to be built, of which 350 MW is scheduled to be operational by 2023.

New Fortress will acquire a 40% ownership stake in WCP and plans to build an offshore liquified natural gas (LNG) receiving, storage and regasification terminal located off the coast of Colombo. New Fortress will initially provide the equivalent of an estimated 1.2 million gallons of LNG (~35,000 MMBtu) per day to the GOSL, with the expectation of significant growth as new power plants become operational.

Earlier, the Samagi Jana Balawegaya and the Archbishop of Colombo, His Eminence Cardinal Malcolm Ranjith had also challenged the deal in court. (Colombo Gazette)

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