Features
Cheaper and faster options available
Importing Liquefied Natural Gas – II
by Dr Janaka Ratnasiri
In Part I of this article, the Writer published in The Island of 11.01.2021, the writer estimated that liquefied natural gas (LNG) imported through the proposed floating storage and regasification unit (FSRU) will take a minimum of six years before the gas could be delivered, considering the possible delays likely to be encountered at every approval stage and the time taken for mobilizing the FSRU. He also said that there are faster ways of getting LNG into the country bypassing all these procedures which are discussed here.
TRADITIONAL METHODS OF IMPORTING LNG
Traditionally, LNG is transported in purposely built carriers of capacity 150,000 – 260,000 cubic metres (cm), which need jetties with depth over 16 m to berth. The terminal for unloading LNG requires insulated storage tanks built on the jetty enabling transfer of LNG to the tank using solid arms, vapourizers to convert LNG into gas and compressors to pressurize the gas before dispatching to customers through pipelines.
The quantity of LNG required to operate combined cycle gas turbine (CCGT) type power plants of capacity 1,000 MW at 85% plant factor is about 1 Mt, which is the minimum throughput required for economically viable operation. It is estimated that such a terminal will cost over USD 500 million and take over five years to complete.
The Writer in his article on 06.01.2021 mentioned that setting up the proposed FSRU will take a minimum of six years to commission including the time taken for obtaining many approvals, though the actual setting up time will not likely be more than 3 years.
USE OF LOW DRAUGHT SMALL CARRIERS
On the West Coast North of Colombo, the sea close to the coast is rather shallow, with the 5 fathom (9.1 m) bathymetry contour lying about 1.25 km from the coast, and the 10 fathom (18.2 m) bathymetry contour lying about 6.5 km from the coast. Hence, it is difficult to construct a traditional land-based terminal close to Colombo. However, a site has been identified at Dikkowita where there is a break in the reef which allows shallow boats to be brought in. Already a Fishery Harbour has been built at this site, and the Ministry of Fisheries had called for proposals to develop projects around the harbour. In response, a proposal was submitted to build a mini-LNG terminal adjoining the Fishery Harbour seawards and this was accepted by the Fisheries Ministry with concurrence of stakeholder organizations.
Hence, one option is to build such a mini-terminal. The proposed project envisages deploying small LNG carriers with capacity 16,000 cm (7,200 t) having a draught below 5 m to bring LNG to the country. For storage, two cryogenic tanks each of capacity 10,000 t of LNG (22,200 cm) were planned to be built on the jetty enabling transfer of LNG from a carrier direct to the storage tank. A gas-fired 300 MW CCGT power plant operating at 80% plant factor requires 285 kt of LNG annually or 24 kt of LNG monthly. With the capacity of the carrier being only 7,200 t of LNG, it has to bring 40 loads of LNG annually or 3.3 loads a month. The proponent has proposed that LNG will be supplied at the spot market price prevailing at Singapore LNG Terminal on short term contract, with supply agreements signed when the spot market price is low with safeguards against price hikes that prevail during Winter when the demand for LNG is high.
The project though accepted by the Ministry of Fisheries and a pre-feasibility study completed, it is yet to receive approval of the Ministry of Energy (MoE) which is mandated to authorize LNG import and distribution. LNG is not a commodity that can be purchased off the shelf. It has to be ordered years or months ahead even on the spot market. Unless the MoE gives the green light for the project, Proponent is unable to enter into any contract for the supply of LNG and undertake an Environmental Impact Assessment (EIA) study. Hence, sooner the MoE grants approval, earlier it will be possible to meet the President’s aspirations.
USE OF ISO INSULATED CONTAINERS
A second option is to bring LNG loaded in insulated standard size containers conforming to ISO Standards in normal container carriers. Once the LNG container is transported to Colombo Port, it could be unloaded on to a road truck and taken direct to a customer site. In view of the highly flammable nature of LNG, particularly if it leaks out and get vaporized, its delivery through the Port and transporting along highways need special approval of the Ports Authority and the Motor Traffic Department, respectively. Transporting of gas across the country as LNG in containers is a more convenient method than using pipelines, because the latter requires many time-consuming approvals, land acquisitions, long construction time and social impacts.
Once delivered at the site, the consumer has two options to unload LNG. Either, a separate insulated tank could be built to store the delivered LNG which could be subsequently re-gasified and transferred to the power plant or the factory in pipelines. Since it is expensive to build LNG storage tanks, the other option is to use the container itself for storage which can hold the gas in liquid form for over two months. With this option, it is necessary to construct three platforms on to which the containers could be unloaded. One will be for keeping the container in use, second is to keep the empty container once it runs out of gas and the third is to keep the new container.
A 40 ft container has a capacity of 46 kl of LNG which has an energy content of about 1,000 GJ. The energy demand of a 300 MW CCGT power plant as shown before is 285 kt of LNG annually which is equivalent to about 46,000 GJ per day. This means a 300 MW CCGT power plant can be fed with 46 container loads of LNG per day imported in standard size containers. Currently, Colombo Port handles more than 5,500 of 20 ft equivalent containers daily, and therefore additional 46 containers will pose no problem. Also, with the anticipated expansion of the Port, it should be able to handle even a higher volume of containers to feed more power plants.
President’s Saubhagye Dekma Policy Framework says “Convert Kelanitissa plant to a natural gas turbine plant and implement two similar plants in Kerawalapitiya and Hambantota before 2023”. The only way to bring NG to Kelanitissa and Kerawalapitiya before 2023 to realize the President’s aspiration is to use insulated containers as described above. Hence, the relevant authorities should give the necessary clearance for this project as a matter of priority.
SUPPLYING LNG FOR DIFFERENT APPLICATIONS
For the operation of a power plant, it is necessary to have a separate storage tank for transferring the LNG brought in containers before it is vapourized for feeding to the power plant since continuity of supply is important. For use in Industrial Estates or Housing Schemes, where the demand is low, the second option mentioned above is more suitable. Once re-gasified, the gas could be supplied to individual industries in an Industrial Estate or individual apartments in a housing scheme in a local pipeline network, managed by an approved organization having licensed staff.
Containers containing LNG meant for transport applications could be taken to a central yard where the LNG is converted into gas and then pressurized for loading into CNG bowsers. Vehicles with spark-ignited (SI) engines could easily be converted into operation with natural gas, supplied under pressure as CNG in bowsers designed for CNG transport. Facilities for dispensing CNG to motor vehicles could be made available at road-side fuel outlets, using the same procedure as that used for transporting LPG and feeding it to vehicles. The only requirement is that the operator will have to obtain a licence from the Petroleum Corporation and enhance the fire-fighting facilities in view of the additional fire risks. With the introduction of NG operated vehicles, the vehicle emission testing centres will become redundant.
Natural gas cannot be used directly in compression-ignited engines as it lacks properties to self-ignite upon compression as in the case of diesel oil. But it can be used blended slightly with diesel, which will provide the necessary ignition while NG will provide the necessary power. Though the use of NG as a substitute for diesel will reduce air pollution and has a price advantage, it does not give the same power output as that from a diesel engine with similar capacity. Further, NG operated heavy vehicles are about 50% more expensive than a similar diesel heavy vehicle. Hence, its use has not caught up like in the case of vehicles with SI engines.
OTHER OPTIONS AVAILABLE
The Cabinet of Ministers, at its meetings held on 09th May and 02nd October, 2018, has granted approval for a Chinese Company to build a 400 MW gas-fired power plant at Hambantota Port along with an LNG terminal, as a government-to-government project and implemented as a joint venture with the CEB. The electricity generated will be used solely for feeding the Chinese Industrial Estate at Hambantota. The project has been granted necessary approvals including EIA on a fast tract basis and its construction is underway.
A third option is to negotiate with China to permit Sri Lanka to use its terminal for bringing LNG in separate carriers engaged by Sri Lanka, upon payment of a toll fee. In many instances, LNG terminals are operating below capacity and if it is the case with the terminal at Hambantota, this should be possible. On the other hand, Sri Lanka could negotiate with China to import and supply Sri Lanka’s requirements at an agreed price.
The imported LNG after regasification could be brought to Kerawalapitiya and Kelanitissa in pipelines possibly laid along the Highway Reservation from Hambantota with no issues of land acquisition coming up. However, laying of a gas pipeline requires a detailed EIA study, which may take a minimum of one year including time taken to issue the terms of reference and public scrutiny time. In addition, the time taken for negotiations with China and getting approval from the Cabinet will take a minimum of one more year.
Thereafter, preparing bid documents and calling for proposals from prospective contractors, evaluating the proposals and awarding the contract and carrying out the actual work will likely to take at least another 3 years, which will extend the total time period to 5 years. It may be possible to fast tract the process by conducting some of these activities in parallel. One advantage of this option is that it is a more permanent solution than the rest, but will have to depend on the Chinese for its sustenance.
CONCLUSION
Several options are available for importing LNG other than building a land-based or a floating terminal as currently proposed. Some of these are of shorter duration but of limited capacity, while another is of permanent nature and also has high capacity. However, a final decision has to be taken after carrying out a detailed technical and financial assessment of each option, assessing the future demand for overall energy in the country as well as possible sectors where energy needs could be met from natural gas. The Ministry of Energy will have to give the highest priority to undertake such a study.
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There’s an ill more dangerous and pervasive than the Coronavirus that’s currently sweeping Sri Lanka. That is the fear to express one’s convictions. Across the public sector of the country in particular many persons holding high office are stringently regulating and controlling the voices of their consciences and this bodes ill for all and the country.
The corrupting impact of fear was discussed in this column a couple of weeks ago when dealing with the military coup in Myanmar. It stands to the enduring credit of ousted Myanmarese Head of Government Aung San Suu Kyi that she, perhaps for the first time in the history of modern political thought, singled out fear, and not power, as the principal cause of corruption within the individual; powerful or otherwise.
To be sure, power corrupts but the corrupting impact of fear is graver and more devastating. For instance, the fear in a person holding ministerial office or in a senior public sector official, that he would lose position and power as a result of speaking out his convictions and sincere beliefs on matters of the first importance, would lead to a country’s ills going unaddressed and uncorrected.
Besides, the individual concerned would be devaluing himself in the eyes of all irrevocably and revealing himself to be a person who would be willing to compromise his moral integrity for petty worldly gain or a ‘mess of pottage’. This happens all the while in Lankan public life. Some of those who have wielded and are wielding immense power in Sri Lanka leave very much to be desired from these standards.
It could be said that fear has prevented Sri Lanka from growing in every vital respect over the decades and has earned for itself the notoriety of being a directionless country.
All these ills and more are contained in the current controversy in Sri Lanka over the disposal of the bodies of Covid victims, for example. The Sri Lankan polity has no choice but to abide by scientific advice on this question. Since authorities of the standing of even the WHO have declared that the burial of the bodies of those dying of Covid could not prove to be injurious to the wider public, the Sri Lankan health authorities could go ahead and sanction the burying of the bodies concerned. What’s preventing the local authorities from taking this course since they claim to be on the side of science? Who or what are they fearing? This is the issue that’s crying out to be probed and answered.
Considering the need for absolute truthfulness and honesty on the part of all relevant persons and quarters in matters such as these, the latter have no choice but to resign from their positions if they are prevented from following the dictates of their consciences. If they are firmly convinced that burials could bring no harm, they are obliged to take up the position that burials should be allowed.
If any ‘higher authority’ is preventing them from allowing burials, our ministers and officials are conscience-bound to renounce their positions in protest, rather than behave compromisingly and engage in ‘double think’ and ‘double talk’. By adopting the latter course they are helping none but keeping the country in a state of chronic uncertainty, which is a handy recipe for social instabiliy and division.
In the Sri Lankan context, the failure on the part of the quarters that matter to follow scientific advice on the burials question could result in the aggravation of Islamophobia, or hatred of the practitioners of Islam, in the country. Sri Lanka could do without this latter phobia and hatred on account of its implications for national stability and development. The 30 year war against separatist forces was all about the prevention by military means of ‘nation-breaking’. The disastrous results for Sri Lanka from this war are continuing to weigh it down and are part of the international offensive against Sri Lanka in the UNHCR.
However, Islamophobia is an almost world wide phenomenon. It was greatly strengthened during Donald Trump’s presidential tenure in the US. While in office Trump resorted to the divisive ruling strategy of quite a few populist authoritarian rulers of the South. Essentially, the manoeuvre is to divide and rule by pandering to the racial prejudices of majority communities.
It has happened continually in Sri Lanka. In the initial post-independence years and for several decades after, it was a case of some populist politicians of the South whipping-up anti-Tamil sentiments. Some Tamil politicians did likewise in respect of the majority community. No doubt, both such quarters have done Sri Lanka immeasurable harm. By failing to follow scientific advice on the burial question and by not doing what is right, Sri Lanka’s current authorities are opening themselves to the charge that they are pandering to religious extremists among the majority community.
The murderous, destructive course of action adopted by some extremist sections among Muslim communities world wide, including of course Sri Lanka, has not earned the condemnation it deserves from moderate Muslims who make-up the preponderant majority in the Muslim community. It is up to moderate opinion in the latter collectivity to come out more strongly and persuasively against religious extremists in their midst. It will prove to have a cementing and unifying impact among communities.
It is not sufficiently appreciated by governments in the global South in particular that by voicing for religious and racial unity and by working consistently towards it, they would be strengthening democratic development, which is an essential condition for a country’s growth in all senses.
A ‘divided house’ is doomed to fall; this is the lesson of history. ‘National security’ cannot be had without human security and peaceful living among communities is central to the latter. There cannot be any ‘double talk’ or ‘politically correct’ opinions on this question. Truth and falsehood are the only valid categories of thought and speech.
Those in authority everywhere claiming to be democratic need to adopt a scientific outlook on this issue as well. Studies conducted on plural societies in South Asia, for example, reveal that the promotion of friendly, cordial ties among communities invariably brings about healing among estranged groups and produces social peace. This is the truth that is waiting to be acted upon.
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By Sanjeewa Jayaweera
It was on 3rd January 1972 that our family arrived in Karachi from Moscow. Our departure from Moscow had been delayed for a few weeks due to the military confrontation between Pakistan and India. It ended on 16th December 1971. After that, international flights were not permitted for some time.
The contrast between Moscow and Karachi was unbelievable. First and foremost, Moscow’s temperature was near minus 40 degrees centigrade, while in Karachi, it was sunny and a warm 28 degrees centigrade. However, what struck us most was the extreme warmth with which the airport authorities greeted our family. As my father was a diplomat, we were quickly ushered to the airport’s VIP Lounge. We were in transit on our way to Rawalpindi, the airport serving the capital of Islamabad.
We quickly realized that the word “we are from Sri Lanka” opened all doors just as saying “open sesame” gained entry to Aladdin’s cave! The broad smile, extreme courtesy, and genuine warmth we received from the Pakistani people were unbelievable.
This was all to do with Mrs Sirima Bandaranaike’s decision to allow Pakistani aircraft to land in Colombo to refuel on the way to Dhaka in East Pakistan during the military confrontation between Pakistan and India. It was a brave decision by Mrs Bandaranaike (Mrs B), and the successive governments and Sri Lanka people are still enjoying the fruits of it. Pakistan has been a steadfast and loyal supporter of our country. They have come to our assistance time and again in times of great need when many have turned their back on us. They have indeed been an “all-weather” friend of our country.
Getting back to 1972, I was an early beneficiary of Pakistani people’s love for Sri Lankans. I failed the entrance exam to gain entry to the only English medium school in Islamabad! However, when I met the Principal, along with my father, he said, “Sanjeewa, although you failed the entrance exam, I will this time make an exception as Sri Lankans are our dear friends.” After that, the joke around the family dinner table was that I owed my education in Pakistan to Mrs B!
At school, my brother and I were extended a warm welcome and always greeted “our good friends from Sri Lanka.” I felt when playing cricket for our college; our runs were cheered more loudly than of others.
One particular incident that I remember well was when the Embassy received a telex from the Foreign inistry. It requested that our High Commissioner seek an immediate meeting with the Prime Minister of Pakistan, Mr Zulifikar Ali Bhutto (ZB), and convey a message from Mrs B. The message requested that an urgent shipment of rice be dispatched to Sri Lanka as there would be an imminent rice shortage. As the Ambassador was not in the station, the responsibility devolved on my father.
It usually takes about a week or more to get an audience with the Prime Minister (PM) of a foreign country due to their busy schedule. However, given the urgency, my father spoke to the Foreign Ministry’s Permanent Sectary, who fortunately was our neighbour and sought an urgent appointment. My father received a call from the PM’s secretary around 10 P.M asking him to come over to the PM’s residence. My father met ZB around midnight. ZB was about to retire to bed and, as such, was in his pyjamas and gown enjoying a cigar! He had greeted my father and had asked, “Mr Jayaweera, what can we do for great friend Madam Bandaranaike?. My father conveyed the message from Colombo and quietly mentioned that there would be riots in the country if there is no rice!
ZB had immediately got the Food Commissioner of Pakistan on the line and said, “I want a shipload of rice to be in Colombo within the next 72 hours!” The Food Commissioner reverted within a few minutes, saying that nothing was available and the last export shipment had left the port only a few hours ago to another country. ZB had instructed to turn the ship around and send it to Colombo. This despite protests from the Food Commissioner about terms and conditions of the Letter of Credit prohibiting non-delivery. Sri Lanka got its delivery of rice!
The next was the visit of Mrs B to Pakistan. On arrival in Rawalpindi airport, she was given a hero’s welcome, which Pakistan had previously only offered to President Gaddafi of Libya, who financially backed Pakistan with his oil money. That day, I missed school and accompanied my parents to the airport. On our way, we witnessed thousands of people had gathered by the roadside to welcome Mrs B.
When we walked to the airport’s tarmac, thousands of people were standing in temporary stands waving Sri Lanka and Pakistan flags and chanting “Sri Lanka Pakistan Zindabad.” The noise emanating from the crowd was as loud and passionate as the cheering that the Pakistani cricket team received during a test match. It was electric!
I believe she was only the second head of state given the privilege of addressing both assemblies of Parliament. The other being Gaddafi. There was genuine affection from Mrs B amongst the people of Pakistan.
I always remember the indefatigable efforts of Mr Abdul Haffez Kardar, a cabinet minister and the President of the Pakistan Cricket Board. From around 1973 onwards, he passionately championed Sri Lanka’s cause to be admitted as a full member of the International Cricket Council (ICC) and granted test status. Every year, he would propose at the ICC’s annual meeting, but England and Australia’s veto kept us out until 1981.
I always felt that our Cricket Board made a mistake by not inviting Pakistan to play our inaugural test match. We should have appreciated Mr Kardar and Pakistan’s efforts. In 1974 the Pakistan board invited our team for a tour involving three test matches and a few first-class games. Most of those who played in our first test match was part of that tour, and no doubt gained significant exposure playing against a highly talented Pakistani team.
Several Pakistani greats were part of the Pakistan and India team that played a match soon after the Central Bank bomb in Colombo to prove that it was safe to play cricket in Colombo. It was a magnificent gesture by both Pakistan and India. Our greatest cricket triumph was in Pakistan when we won the World Cup in 1996. I am sure the players and those who watched the match on TV will remember the passionate support our team received that night from the Pakistani crowd. It was like playing at home!
I also recall reading about how the Pakistani government air freighted several Multi Barrell artillery guns and ammunition to Sri Lanka when the A rmy camp in Jaffna was under severe threat from the LTTE. This was even more important than the shipload of rice that ZB sent. This was crucial as most other countries refused to sell arms to our country during the war.
Time and again, Pakistan has steadfastly supported our country’s cause at the UNHCR. No doubt this year, too, their diplomats will work tirelessly to assist our country.
We extend a warm welcome to Mr Imran Khan, the Prime Minister of Pakistan. He is a truly inspirational individual who was undoubtedly an excellent cricketer. Since retirement from cricket, he has decided to get involved in politics, and after several years of patiently building up his support base, he won the last parliamentary elections. I hope that just as much as he galvanized Sri Lankan cricketers, his political journey would act as a catalyst for people like Kumar Sangakkara and Mahela Jayawardene to get involved in politics. Cricket has been called a “gentleman’s game.” Whilst politics is far from it!.
Author
Believe me, seeing certain videos, on social media, depicting action, on the dance floor, at some of these entertainment venues, got me wondering whether this Coronavirus pandemic is REAL!
To those having a good time, at these particular venues, and, I guess, the management, as well, what the world is experiencing now doesn’t seem to be their concerned.
Obviously, such irresponsible behaviour could create more problems for those who are battling to halt the spread of Covid-19, and the new viriant of Covid, in our part of the world.
The videos, on display, on social media, show certain venues, packed to capacity – with hardly anyone wearing a mask, and social distancing…only a dream..
How can one think of social distancing while gyrating, on a dance floor, that is over crowded!
If this trend continues, it wouldn’t be a surprise if Coronavirus makes its presence felt…at such venues.
And, then, what happens to the entertainment scene, and those involved in this field, especially the musicians? No work, whatsoever!
Lots of countries have closed nightclubs, and venues, where people gather, in order to curtail the spread of this deadly virus that has already claimed the lives of thousands.
Thailand did it and the country is still having lots of restrictions, where entertainment is concerned, and that is probably the reason why Thailand has been able to control the spread of the Coronavirus.
With a population of over 69 million, they have had (so far), a little over 25,000 cases, and 83 deaths, while we, with a population of around 21 million, have over 80,000 cases, and more than 450 deaths.
I’m not saying we should do away with entertainment – totally – but we need to follow a format, connected with the ‘new normal,’ where masks and social distancing are mandatory requirements at these venues. And, dancing, I believe, should be banned, at least temporarily, as one can’t maintain the required social distance, while on the dance floor, especially after drinks.
Police spokesman DIG Ajith Rohana keeps emphasising, on TV, radio, and in the newspapers, the need to adhere to the health regulations, now in force, and that those who fail to do so would be penalised.
He has also stated that plainclothes officers would move around to apprehend such offenders.
Perhaps, he should instruct his officers to pay surprise visits to some of these entertainment venues.
He would certainly have more than a bus load of offenders to be whisked off for PCR/Rapid Antigen tests!
I need to quote what Dr. H.T. Wickremasinghe said in his article, published in The Island of Tuesday, February 16th, 2021:
“…let me conclude, while emphasising the need to continue our general public health measures, such as wearing masks, social distancing, and avoiding crowded gatherings, to reduce the risk of contact with an infected person.
“There is no science to beat common sense.”
But…do some of our folks have this thing called COMMON SENSE!
