A cabinet paper has been submitted to annul an agreement signed in 2021 with the US supplier New Fortress for the supply of LNG gas.
It seeks approval to hand over the task to India’s Petronet, Celon Electricity Board (CEB) sources said.
There have been accusations the pact with the US company had been signed during Gotabaya Rajapaksa’s presidency outside the tender procedure.
A preliminary agreement had been signed to sell a 40 per cent treasury-held stake of West Coast company that owns the 350 mw Yugadanavi power plant to New Fortress, and to give the construction and maintenance of a floating storage and pipeline for LNG to the power plant.
This power plant and another to be built under the second phase are both fuel and LNG powered, the latter being cost effective by half than the former.
