Gammanpila faults FT headline on cheapest LNG price

Thursday, 30 September 2021 00:30 - - {{hitsCtrl.values.hits}}

Energy Minister Udaya Gammanpila yesterday faulted the headline of the Tuesday’s Daily FT article, ‘Prices for LNG arriving at New Fortress plant will be cheapest’ based on an interview and article published by Bloomberg. (https://www.ft.lk/front-page/Prices-for-LNG-arriving-at-New-Fortress-plant-will-be-cheapest-Gammanpila/44-723540)

The Minister said that what he meant was that Sri Lanka would go for the cheapest LNG based on pricing formulae of three options – America, East Asian and European and didn’t mean LNG reaching the specific facility of New Fortress will be the cheapest.

The Bloomberg article was centred round the Government’s deal with New Fortress and the specific reference to the Minister was as follows: "Prices for cargoes arriving at the Sri Lankan facility will be the cheapest of either Asian LNG or a US gas hub pricing formula, said Gammanpila. New Fortress, which will operate the terminal, will charge an extra 15% for turning the liquid fuel back into gas, he said.” Source: https://www.bloomberg.com/news/articles/2021-09-27/sri-lanka-vows-to-push-on-with-lng-imports-even-as-gas-surges

Editor’s note: FT stands by its headline.

Gammanpila slams Govt. over New Fortress LNG deal