Trade union action looms over Sri Lanka’s disputed LNG power plan

• 6 years ago (2017-09-04)
• David Flin

Asia 848 Gas 371

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Engineers of state-run Ceylon Electricity Board have given notice of trade union action over a generation plan that they claim show LNG power plants were shown to be cheaper than coal. The Public Utilities Commission of Sri Lanka (PUCSL), the power regulator, had struck down coal power plants in a least-cost long-term generation expansion plan (LCLTGEP), although the basis for this has been disputed.

The CEB Engineers Union wrote to the Minister of Power, saying: “We warned you well in advance, six months ago first, and then three months ago again, that the PUCSL is plotting to take off coal and force LNG in to the LCLTGEP. Then, after what we predicted had exactly happened, we requested the intervention of the Ministry a month ago. Unfortunately, this fell on deaf ears.”

The CEB Engineers Union said that unless a favourable reply is received by 7 September, their members will withdraw from technical evaluation committees on new plants, except that required to avert a power crisis in 2018-2020. It also said that if nothing is done by 21 September, engineers will withdraw from emergency plants TECs as well.

A strong push for LNG has been made by several big groups in Sri Lanka for over a decade. LNG prices have fallen sharply over recent years, making it more affordable. However, there is uncertainty over whether or not prices will revert back to long-term normal when LNG use expands with more power plants, according to some analysts. Last week, the Sri Lankan Cabinet decided to build up to 1000 MW of LNG plants over several years.