New Fortress Colombo LNG Terminal

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New Fortress Colombo LNG Terminal is a liquefied natural gas (LNG) import terminal proposed in Sri Lanka. In August 2023, the government indicated it was interested in allowing a different company to develop the terminal, and New Fortress's proposal is considered shelved.

Location

The terminal is proposed to be located off the coast of Colombo, Sri Lanka.

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Project details

• Operator:

• Owner: New Fortress Energy

• Parent company: New Fortress Energy

• Location: offshore Colombo, Sri Lanka

• Coordinates: 6.9048, 79.4723 (approximate)

• Capacity: 1.2 million gal/day (0.71 mtpa)

• Status: Shelved

• Type: Import

• Start year: 2023

• Financing:

• FID status:

• Associated infrastructure: Yugadanavi power station

Background

In September 2021, New Fortress Energy announced that it had signed an agreement with the government of Sri Lanka in which it would take a 40% stake in the Yugadanavi power station and develop a new LNG import terminal offshore Colombo. The facility is expected to begin operations in 2023.

In March 2022, the Supreme Court of Sri Lanka dismissed a petition to halt New Fortress's project, and the project is expected to move forward.

In August 2023, Sri Lanka Mirror reported that New Fortress's proposal to the Sri Lankan government had been unsolicited, and not in response to the government's open proposal. "However, due to strong objections to the deal, the agreement had not been implemented up to now," it said. Instead, the government awarded a tender to the Indian company Petronet LNG. Given government's lack of interest in New Fortress's proposal, the project is now considered shelved.

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