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Coal to LNG: CEB Unions say act wisely
View(s):Amidst Government moves to convert the Sampur coal power plant to liquefied natural gas (LNG), Ceylon Electricity Board (CEB) engineers are protesting that it is not prudent to make such decisions “in an ad hoc manner”.
LNG-based thermal plants have been considered as candidate plants in the Long Term Generation Expansion Plans of the CEB since 2011, but the relatively high prices of LNG in the past prevented it being picked as an economical option,” CEB Engineers’ Union (CEBEU) head, Athula Wanniarachchi, told the Sunday Times. “However, it was planned to convert existing diesel plants to LNG, when gas supply from Mannar was confirmed.”
“It is true the LNG price in the USA has drastically declined recently due to innovations in gas explorations,” he said. “But we should not take ad hoc decisions like ‘no more coal, only LNG plants in the future’, by just analysing price fluctuations within a short span of time.”
The transmission network development has already been planned and commissioned from Sampur to Veyangoda via Habarana, with transferring capability up to 1,800 MW of power from the proposed coal power plants at Sampur (one Indian, the other Japanese).
“Furthermore, this network development would facilitate the integration of more renewable energy resources, as a majority of the wind and solar potential sites are located in the North and Northeast regions, according to Sri Lanka Sustainable Energy Authority,” Mr Wanniarachchi said. “From the utility’s point of view, it is recommended to ensure the implementation of the proposed coal-based power plant in Sampur, considering fuel diversification and the cost to the nation.”
“To operate LNG plants, the Government must construct an LNG storage terminal which requires a huge investment,” he continued. “There are other short-term (high price) measures like floating terminals, but the best option is to go for a conventional terminal in the long run. As CEBEU, we recommend building our first LNG terminal close to Colombo, not Sampur.”
It is possible to convert more than 1,000 MW of existing and future diesel-based CEB and independent power producers’ (IPP) plants around Colombo to LNG, Mr Wanniarachchi said. Considering the massive investment required, an LNG terminal for the sole purpose of electricity generation will not be feasible. “The country must have a holistic approach to link the transport sector and other energy-intensive industries to LNG,” he opined.
Air pollution in Colombo and its suburbs is mainly due to the transport sector,” he said. “This can be mitigated by migrating fuel option of vehicles to LNG. The highest energy demand in the country is also around Colombo, but it is not feasible to put up a coal power plant in Colombo, as there is no provision for coal unloading, etc.”
“Some so-called experts talk about LNG plants in Colombo, Hambantota and Sampur,” the CEBEU head said. “The country cannot afford to build two or three LNG terminals or, construct a pipe network covering all these locations within a short span of time. So, we should focus on the most suitable place for LNG first, that is Colombo.”
If the Government takes any ad-hoc decision to suddenly convert the Sampoor plants’ fuel option to LNG, it will ultimately end up in a combined cycle plant running on diesel, with a mere plan to convert it to LNG which is not realistic,” he stressed.
“It will be similar to the infamous, costly 300 MW Kerawalapitiya plant which was initially planned to run on LNG, but is actually running on expensive diesel, even eight years after it was commissioned.”