Minister Arjuna’s Natural Gas Company plan ‘goes for a six’.

An ambitious plan to establish the Sri Lanka Natural Gas Company (SLNGC) Ltd under the Petroleum Resources Development Ministry to handle operations of natural gas industry in Sri Lanka has been shot down on the directions of President Maithripala Sirisena recently.

Minister Arjuna Ranatunga has submitted a cabinet proposal to set up this company to promote and facilitate the use of natural gas as a source of energy in power, transport, industries, commercial, domestic and other sectors.

The main aim of this limited liability company was to regulate the industry through the authorisation of eligible parties to engage in business as importers, exporters, sellers, suppliers, or distributors of natural gas and introduce a scheme of granting licences to eligible persons for attending to installation, maintenance and repair of LNG distribution systems.

According to the plan of the ministry, this company was to serve as a credible entity to participate in the activities of the joint venture on LNG between Sri Lanka, India and Japan.

Submitting his observations in writing relating to this cabinet memorandum, the President indicated that the main activity of the proposed company will be to import natural gas and supply it to the Ceylon Electricity Board (CEB).

However, he pointed out that the CEB should be able to establish a mechanism for obtaining natural gas for its operations.

The President noted that there was no need for establishing a separate company for handling natural gas operations.

Finance Minister Mangala Samaraweera in his observations to the cabinet noted that he is also not agreeable to the proposal stating that even though the companies for gas distribution and associated services had been formed in the past, they have been privatised subsequently.

He pointed out that the government policy for the usage of gas for power generation and the other sectors has not yet been finalised.

The future energy plans for the Power and Renewable Energy Ministry and the operations needs of the CEB are to be considered in formulating a national strategy on natural gas operations on the directions of the President, Presidential Secretariat sources said.

(SLNGC) Ltd under the Petroleum Resources Development Ministry to handle operations of natural gas industry in Sri Lanka has been shot down on the directions of President Maithripala Sirisena recently.

Minister Arjuna Ranatunga has submitted a cabinet proposal to set up this company to promote and facilitate the use of natural gas as a source of energy in power, transport, industries, commercial, domestic and other sectors.

The main aim of this limited liability company was to regulate the industry through the authorisation of eligible parties to engage in business as importers, exporters, sellers, suppliers, or distributors of natural gas and introduce a scheme of granting licences to eligible persons for attending to installation, maintenance and repair of LNG distribution systems.

According to the plan of the ministry, this company was to serve as a credible entity to participate in the activities of the joint venture on LNG between Sri Lanka, India and Japan.

Submitting his observations in writing relating to this cabinet memorandum, the President indicated that the main activity of the proposed company will be to import natural gas and supply it to the Ceylon Electricity Board (CEB).

However, he pointed out that the CEB should be able to establish a mechanism for obtaining natural gas for its operations.

The President noted that there was no need for establishing a separate company for handling natural gas operations.

Finance Minister Mangala Samaraweera in his observations to the cabinet noted that he is also not agreeable to the proposal stating that even though the companies for gas distribution and associated services had been formed in the past, they have been privatised subsequently.

He pointed out that the government policy for the usage of gas for power generation and the other sectors has not yet been finalised.

The future energy plans for the Power and Renewable Energy Ministry and the operations needs of the CEB are to be considered in formulating a national strategy on natural gas operations on the directions of the President, Presidential Secretariat sources said.