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Sunday, 14 February 2010

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From thermal to natural gas

Power Stations will be converted from thermal to natural gas reducing the unit production cost by over fifty per cent with assistance pledged by Russia, said Power Minister Mahindananda Aluthgamage.

At present six thermal power plants including Kelanitissa plant generate 548 MW out of 2400 MW, the country's total electricity production by Hydraulic thermal and other sources.

The Power Minister said that during President Mahinda Rajapaksa's recent visit to Russia an important agreement on oil and gas varyfavourable to Sri Lanka was signed by the two countries.

"Sri Lanka should switch over from the outdated and costly thermal power generation to natural gas which not only reduces the production cost but is also eco-friendly", he said.

"President Rajapaksa visited the Russian Gas and Oil Company Gazprom - Moscow and had talks with its CEO Alexei. B. Miller. The Russian Company agreed to help Sri Lanka to develop the power sector, he said.

Gazprom is the largest gas company in the world and supplies gas to a number of countries including over 30 European nations. The annual supply is estimated at 500 million cubic metres.

Power and Energy Ministry Media Secretary Harsha Abeykoon said that the National Energy Plan initiated by Power and energy Minister W. D. J. Seneviratna is set to go for natural gas and coal for power generation

in place of thermal power which is both expensive and environmentally unhealthy. The conversion to natural gas is highly economical and beneficial to the country, he said.

He said Rs. 50,000 million is spent by the government annually to import high quality diesel for power generating plants.

The Ceylon Electricity Board (CEB) spends Rs. 124 billion to generate electricity whereas it earns only Rs. 118 billion loosing Rs.6 billion annually under the present setup he said.

As advised by President Mahinda Rajapaksa the Power and Energy Minister took steps to meet this alarming situation with the setup of hydraulic, inexpensive natural gas and coal power plants such as Norochchole and Kotmale, he said.

The government had taken a decision to inactivate diesel power plants as early as possible, Abeykoon said.

 

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