Natural gas promoted

Tuesday, 14 December 2010 00:04 - - {{hitsCtrl.values.hits}}

Govt. estimates US$ 572 million savings; earmarks sectors for policy changes and appoints steering committee

By Uditha Jayasinghe

IN an effort to reduce energy costs and save an estimated US$ 572 million annually, the Government is promoting natural gas production.

Power and Energy Minister Champika Ranawaka presented a Cabinet paper detailing how Sri Lanka’s energy costs can be reduced by US$ 572 million and requested that a steering committee be appointed to work on the policy change.

Natural gas...

“Its mandate is to identify sectors for diversification of present day activities from liquid fuels to natural gas and to guide the relevant sectors on modalities to be adopted in the relevant areas. Their efforts would improve the quality of life, environment and bring benefit to the country,” said Media Minister Keheliya Rambukwella.

The steering committee will comprise secretaries to the Ministries of Industries, Agriculture, Transport, Petroleum and Economic Development, with the Power and Energy Ministry Secretary appointed as Convenor. Secretary, Ministry of Finance and Planning will be the Committee Chairman.

The expectation is to save US$ 314 million from electricity generation, US$ 190 million from the fertiliser subsidy, US$ 53 million from the transport sector and US$ 15 million from the domestic and industrial sector.

“The Ceylon Petroleum Corporation (CPC) is to be the agency responsible for the importation and supply of natural gas and to authorise the petroleum industries to explore the possibility of arranging natural gas on long term supply arrangement on government to government basis at least cost using new technologies.”

Power, transport, fertiliser and domestic and industrial sectors have been earmarked for usage of natural gas. The cabinet paper remarked that Sri Lanka has already lost a great deal of time in making appropriate investments to promote natural gas.