Presentation on theme: "Sri Lanka ENERGY HUB Panel Discussion Saliya Wickramasuriya Director General - PRDS MBA Alumni of the University of Colombo Colombo, February 2014."— Presentation transcript:
Sri Lanka ENERGY HUB Panel Discussion Saliya Wickramasuriya Director General - PRDS MBA Alumni of the University of Colombo Colombo, February 2014
Sri Lanka Energy Policy “The two main objectives of the (Energy) Policy are to minimise the impact of the increasing world energy prices on the country’s economy and to develop every supply within the country” (Mahinda Chinthanaya 2005)
Energy Security (Definitions) Energy security is the association between national security and the availability of natural resources for energy consumption. Access to cheap energy has become essential to the functioning of modern economies. Long term measures to increase energy security center on reducing dependence on any one source of imported energy, increasing the number of suppliers, exploiting native fossil fuel or renewable energy resources, and reducing overall demand through energy conservation measures. It can also involve entering into international agreements to underpin international energy trading relationships
Defined Energy Hub Activities The CPC shall be the pivot in establishing Sri Lanka as the energy hub, mainly by increasing its oil and gas exploration activities… (MCID 2010) The CPC intends to commission an additional State of the Art oil refinery whilst upgrading the one at Sapugaskanda in order to be a competitive force in the region.(MCID 2010) The CEB is a key driver to make Sri Lanka one of the viable energy hubs in the region….and also provide consultancies for designing and building power grids in South Asia and Africa…(MCID 2010)
Where are we today? In 2012, the total energy consumption from all sources, imported and indigenous, in Sri Lanka has been Peta Joule (10 15 J & 1 J = 1/ calorie) (SLSEA, 2013). Out of this amount, petroleum oil has generated PJ, mostly in the transport and power sectors. The energy content of oil burnt for electricity generation in all the thermal power plants was 78.6 PJ.
Future Trends Power demand growth (est 10% pa) H/H demand growth New industries Transport demand growth
Investors’ Challenge - Monetization Are there Reserves? Is there a Market? Is it commercially viable?
LNG or Natural Gas? 1.End users require gas 2.Natural gas is produced from reservoirs by pipeline at “production cost” 3.It may then be liquefied for transport and storage (1/640 th the volume) 4.It has then got to be re-gassified for use 5.LNG cost to consumer will always include 3+4
Points to Ponder Gas pricing is regional, not international LNG will always include cost of logistics Fossil fuel prices trend upwards over long term Cost of domestic resources trend downwards over long term Gas increases “portability” of power generation Externalities have a real cost
Actual Cost of Energy SL
A Domestic NG-based Future? Zero dependency on external feedstock Efficient exploitation of domestic resources Diversified energy mix Capacity building in energy policy and technology International connectivity Export of refined products R&D excellence in energy conversion and CCS