The intricate story of LNG-NG: What do we need? LNG or NG or neither? -Small island

2021-11-16 08:15:36 By : Ms. Mary Chan

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I don't like natural gas in gaseous NG or liquefied LNG, both of which have been discussed locally and at COP 26 in Glasgow. At the same time, I consider myself a realist, and Sri Lanka's well-being and needs have received the highest attention.

Natural gas, mainly methane (CH4), exists in large pockets deep underground or close to the surface in a more dispersed manner. It comes from decaying biomass and, unfortunately, is also emitted by ruminant cattle.

Those who enjoy this natural but declining fossil fuel resource on their own territory or who can contact their neighbors on the same land can do so in a gaseous state, starting to mine by laying extensive natural gas pipelines that sometimes reach thousands of kilometers.

But in recent decades, with the discovery of a large amount of natural gas (the exploitation of tar sands and hydraulic fracturing practices in the United States and Canada that have disastrous effects on the environment), the temptation of this seemingly economical and significantly less polluting fossil fuel has even attracted In addition to the resources of the countries themselves or their neighbors that do not have any local natural gas, these resources can be accessed through pipelines. This led to the development of the NG liquefaction process, which is cooled to approximately –160 degrees under high pressure, purely for the purpose of economically acceptable main marine logistics, creating the LNG concept and market.

However, since natural gas can only be used in gaseous form, regasification facilities are required at the receiving end and implemented in land or logistics distribution terminals close to the point of use. The oil and gas industry used their ingenuity to further turn the tide by developing a floating storage and regasification unit (FSRU), which is designed to serve those who cannot deploy land-based regasification facilities on land because These facilities may be quite expensive. As the name suggests, these are designed as floating vessels moored close to the point of use, and the LNG is transported to the FSRU via bulk natural gas carriers. The regasified natural gas is transported through relatively short pipelines to land-based consumers, such as power plants.

This is definitely a simple explanation that laymen understand. Eng gave extensive and detailed explanations in several articles. Nalin Gunasekera is a well-known international expert on the subject. In the daily news on November 3, 4, and 5 and Sunday Island on November 7, 2021, for those who are interested in learning more about issues related to these systems People.

However, my purpose in writing this review is not to discuss these technical complexities, but to examine how Sri Lanka should evaluate the options and the best way to our advantage if we are to consider LNG or NG. As mentioned earlier, if there is a choice, I don't want to have to use NG in any form. It is a fossil fuel that is now considered to be a very important factor in global warming, and its effectiveness is 80 times that of carbon dioxide in the short term. But its advantage is that it is a cleaner burning fuel that will not release too many dangerous and toxic pollutants to the entire exosphere.

What are the options for Sri Lanka?

Before seeking an answer to this inquiry, some important issues must be recognized. which is:

We have firmly established the goal of reaching 70% of the contribution rate of renewable energy power generation by 2030

It is currently predicted that the 30% contribution of fossil fuels in 2030 is 8997 GWh, while the current contribution is 9000 GWh (CEB 2020 statistics). Apart from being a substitute for decommissioning, there is no room for additional fossil fuel power plants. The 350 MW Sobhadhanawi power plant can only be justified in this case.

The remaining economic life of the 900 MW Lak Vijaya coal-fired power plant may be approximately 25 years.

The price of coal has soared, reportedly reaching more than US$240 per ton at the source, and Sri Lanka has no suppliers even at this price.

Crude oil prices have also soared to US$85 per barrel and appear to remain at that level.

Therefore, as long as the cost of power generation is acceptable, the use of natural gas to meet the 30% gap seems to be an option, and at least the point of use is less harmful to the environment.

It is most illogical and meaningless to compare the CEB bidding for FSRU without considering the cost and mechanism of LNG supply and the NFE proposal (including monopolizing LNG supply at an unknown price). Talk about comparing a rotten apple with a worse orange.

Although Eng expressed serious doubts. Nalin Gunesekera, due to the reasons given later, may attract investors to develop Mannar natural gas resources

Where do we go from this? Do we have no choice at all?

First of all, there is no reason to continue this love of LNG, because it will force Sri Lanka to continue to buy fossil fuels at scarce U.S. dollars and prices beyond our control. It is unreasonable to attract 250 million US dollars for the sale of precious national assets. No matter how tight the current foreign exchange situation is, it is an empty relief because it will cause the loss of billions of dollars in just a few years.

Secondly, FSRU is an inevitable accessory of LNG supply. Britain. Gunasekera spared no effort to explain the complexity of the system, the high expenditures required for its implementation and operation, and the large number of risks involved in the entire transaction. He was born as an expert with decades of experience in this field. We would indeed be foolish enough to ignore his warnings and fall into a trap that we cannot escape.

The whole process of this attempt to use natural gas as an alternative fuel source establishes possible supply methods without the ability of anyone, and complicates the problem by awarding contracts to build power plants, if not because of tragic Sri Lanka is in chaos. This is even more tragic considering that the financial and economic feasibility of the project was not thoroughly reassessed based on current supply and price issues before deciding to win the bid for the 2017 tender. 2016. Sri Lanka has pushed itself to a desperate situation. The solution is not to be blackmailed, but to abandon LNG and FSRU options at this later stage. SLSEA calculated that even if the most optimistic assumption is made about the current price of LNG, the cost of power generation from LNG will be around Rs 35.00 per kWh. This can only rise with the continued depreciation of the rupee and the price trend of LNG.

Just for comparison, the power generation of the Siyambaladuwa solar project is expected to be 11.00 rupees per kilowatt hour, while the power generation of the Mannar wind power plant is less than 10.00 rupees per kilowatt hour. The current cost of adding batteries to manufacture these solid sources of power generation is only 8.50 rupees per kilowatt hour, and it is expected to drop significantly to rupees in the next few years. 3.50 per kilowatt hour by 2025.

What about Yugadhanawi power plant and the sale of 40% of the shares to New Fortress Energy (NFE)? If the transaction has been confirmed and 250 million USD has been received, then the share transaction will proceed on its own. But no additional conditions can be attached, such as monopolizing the supply of liquefied natural gas. This situation is completely illegal, and we can only hope that the current litigation can support this view.

Currently, the Yugadhanawi plant operates with a plant factor of approximately 30%. Let it continue to use furnace oil, even if the cost of FO may have risen recently. The impact on the national economy and CEB cash flow will be far less worrying than the proposed LNG accident.

What is the fate of Mannar's oil and gas resources?

Although British. Gunasekera believes that its proven potential is too small to attract any investors, and he hedges his bets by making surprising comments about the possibility of this resource as a supplement to FSRU and LNG. Considering his dire warnings about any attempt to implement FSRU, perhaps he might suggest that Mannar resources may exist independently.

However, I would like to take a more optimistic view of the possibility and necessity of reaching a successful development agreement (due to Sri Lanka’s poor record in international negotiations, it should also pay due attention to warnings in this regard) for the following reasons two:

Due to the cost of coal, the operation of the Lak Vijaya coal-fired power plant is now impossible.

We do not seem to have the courage to exceed the 70% renewable energy target, so we should look for solutions that minimize economic and environmental damage.

The successful development of the Mannar gas field has achieved these two goals, because there is an estimated 9 trillion cubic feet of natural gas potential from the currently explored blocks, so it is possible to obtain more economic and financial benefits; this is our own potential consumption Many times the amount will generate a large surplus.

The world view of natural gas

Although I am opposed to fossil fuels in any form, I must prove that I am a realist and hope to reach an acceptable agreement on this development. The fact remains that CEB has not accepted the 70% renewable energy target until now. Therefore, we need to find the least disruptive way to meet the 30% balance. Around the world, although people agree that NG is a very effective greenhouse gas due to leaks at extraction, storage and transportation points, it is still a highly sought after fuel. Although a broad agreement has been reached to eventually terminate the use of coal, in some countries, even as early as 2025, there is no such agreement on natural gas.

Even at the COP 26 summit, currently called the "Green Washing Festival" by Greta Thunberg, its commitment is only to reduce methane emissions by 30% by 2030, while major producers and users of natural gas such as India, Russia, and China have not.

Therefore, in the foreseeable future, the demand and use of natural gas will remain high, and will even be upgraded with the substitution of coal. The region with the largest increase is expected to also appear in Asia. Along with this, there is a huge gap in the quotations of different NG markets such as Henri Hub and the Japanese and Korean markets, as shown in the figure.

Therefore, developing our own resources is attractive and very at the center stage of the high-demand field.

Therefore, although Sri Lanka has pledged to achieve zero-carbon status by 2050, there is no reason not to open up this resource as a transitional solution, aiming for options with minimal environmental damage and potentially economically attractive options.

What if we fail to reach an acceptable agreement and have to proceed without any gas?

Considering the ongoing discussions at COP 26 about funding any new fossil fuels, this may be a reality. In the long run, many people, including me, think this is the best option.

Sri Lanka has sufficient local renewable energy resources, and 100% renewable energy options are not impossible. This issue is more like a financial issue than a technical issue, requiring capital to import necessary capital goods. COP 26 also offers hope in this regard. The project is already in the planning or implementation stage. In addition to the expected wind, biomass and solar potential, 100 MW solar and wind energy projects and major hydropower projects up to approximately 177 MW will help bridge this gap.

The attractive potential of doubling the power generation capacity of the Victoria project that has undergone a feasibility study requires urgent consideration.

The bottom line is clear. Before making any ill-considered promises, there are sufficient reasons to abandon the FSRU option.

According to reports, the possibility of attracting reliable investors to develop Mannar resources is very real and imminent. Therefore, it would be the most reckless to implement the short-sighted promise of FSRU and therefore import LNG.

More active measures need to be taken to utilize our own renewable energy resources, rather than restricting such actions to words. The only lacking factor is the confidence and foresight of the energy authorities, who are blind to world trends in technology and business.

There is an urgent need to formulate a time-specific action plan for 70% renewable energy, and put more emphasis on the goals and activities in the next few years. These are very valuable for adjusting the plan for the next phase, such as 2027. It is likely that with the first stage of technological progress and learning, more challenging goals can be set.

At least for now, can we adopt this "can do" attitude?

Useful reference for education

Civil strife; hope for the earth outside

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Author: Siri Galhenage Psychiatrist [Retired] [sirigalhenage@gmail.com]

John Stuart Mill [1806-73], a British philosopher, political economist, and parliamentarian, extrapolated the concept of market competition to the theory of freedom of speech, which opposed censorship and supported the free flow of ideas. He used the term "ideology market" to compare freedom of speech. He asserted that no one can claim to have the truth, and he said that unchallenged ideas lead to dogma and authoritarianism. He claimed that freedom of speech is the best way to distinguish lies from facts and promote truth, which is a precious commodity in democracy. [On Freedom 1859]

Living in an era of domestic and international social, political and economic turmoil, there is a great demand for information and its impact on our lives. Along with the public's strong interest in such information, the media has conducted an equal degree of censorship of its reports in order to arrive at the truth.

From the perspective of its readership, The Island has been recognized as a valuable medium of free expression. It is not just a news media. In four years, it has established itself as a market of ideas offering a variety of topics. Those who use the magazine as a platform for free discussion of ideas include historians, educators, economists, scientists, administrative officials, pilots, social critics, political analysts, literary critics, environmentalists, artists, religious leaders, and lawyers. , Engineers and colleagues in the medical profession-many of them enjoy high status in the community. This list is not exhaustive. The Island’s ability to attract the above-mentioned contributors is a measure of the high evaluation of the paper by English-speaking readers.

There are thoughts and concerns expressed through opinion columns every day. The theme is determined by the social and political atmosphere of the day and inspired by the writer's emotional attitude. Contributors to feature columns, The Midweek Review, and Satmag are motivated by factors such as aesthetic passion, historical impulse, and political purpose; in other words, a desire to share experiences that are considered valuable or beautiful; extract past episodes for later For human use; or to express the vision of the society we should strive for.

The editorial occupies a central position as a leader in the free flow of ideas. It captures the emotional tone of the country and supports the community to hold the government of the time accountable, regardless of its political persuasiveness or the predicament they are in. It continues to expose corrupt practices and secret transactions, decisions made without public supervision, and resist any censorship attempts. The editor used his unique phrases to express a series of concerns [many of us can only think over and over], sometimes ironic and irritating, as well as local sayings or Shakespearean quotes that attract many readers.

Lest I forget Jeffrey, he used his cartoons of ordinary people carrying tattered bottomless shopping bags to express the plight of the trampled. In a recent timely cartoon, he stood on the edge of a cliff, escorted by the leaders of both political parties, and was about to fall into the abyss-leaving the fate of the three gentlemen to the imagination of readers!

Regrettably, in the past few decades, due to the rise of the Internet, the number of print media has declined, and this problem has been exacerbated by the pandemic. Digital dissemination of information through social media is cheaper and faster, and may be more attractive to advertisers that generate revenue. But there is a downside. Social media only provides a narrow range of opinions, and the information provided may not always be credible; it may not cover important topics and may be driven by pressure groups of specific ideologies. In addition, people may tend to adjust their online experience to suit their point of view. Company ownership aims to maximize profits; it reduces the quality of real news and community services. It discourages respectful discussions about the ideas necessary for the best functioning of democracy.

The decline in the literacy rate and its accompanying influence in our society has touched a deep feeling among the public today-the literacy rate used here not only means the ability to read and write, but also includes the broader concept of social competence-education important parts of.

The core of poverty and emptiness in today's society lies in the decline of printed words. We have lost the romance of written words, and thus our aesthetic, moral and ethical sensitivity, and our social conscience. This is a sad accusation against a country that prides itself on the ancient literary heritage that forms the foundation of our civilization. We did not follow the advice of Vadan Kavi Potha:'elmen acuru uganivu idri veda thaka'. [Learn your letters with love, for the good of the future].

I am honored to pay a brief tribute to The Island as it celebrates its 40th birthday. Periodicals are a social asset. My hope is that with the wider circulation of print and digital forms, it will give more acquiescence to rural people and young people in the next ten years, but this is just the dream education of a country that is procrastinating in correcting English inequality. A high-quality newspaper can play an educational role in a child's growth period.

Sadly, at present, the island has been "slim down" and has been affected by the pandemic. The loyal readers of this respected journal look forward to revitalizing themselves. At 40 years old, life has just begun! If I could end with a request to its managers and editors: keep the light and continue to pursue the truth; the darkness is coming!

In the words of Leo Tolstoy, one of the greatest novelists of all time [if not the greatest], a war correspondent before the Crimean War: "The hero in my story, I give my whole heart I love him, I tried to show who with his beauty, who was, is and will always be the most beautiful person-the truth." [Sevastopol sketch]

Just a few weeks before the age of 65 (the age when the third vaccine is mandatory in many countries/regions), my initial memory is still clear. It is a man and a typewriter. The man sits on the short side of a long table. He wore a pair of beige pants, socks and polished "high heels." He is wearing a white sleeveless vest and watch. I am in a playpen. My grandmother is behind it. She smiled kindly. The man is typing fast.

It's my father. I call him Thatththa. They called him Mervyn. He works in a newspaper. He is a reporter. When Mahinda Rajapaksa passed away in 1999, a few months after his 70th birthday, he wrote in a newspaper eulogy: "Mervin de Silva is undoubtedly the uncrowned king of media in Sri Lanka." . Last year, Marwan Marcan-Markar of Nikkei told me that Mervyn is a "South Asian news agency."

From the birth of the island to his own death, Mervyn wrote a weekly column for the island under the pseudonym Kautilya. On the second day after his death, The Island published news reports about his death on the first page and the latest Kautilya column he submitted a few days ago, on the Op-Ed page of its usual homepage.

Therefore, the English media in Sri Lanka is very important to me. I say "English media" not only because Mervyn is an English journalist with an international reputation, but also because my parents and I both talk to each other in this language, and because of the cruel fact that you can speak almost anything in English. The pressure of language and escape from it, because no one outside your cultural area and your borders will judge you for it. You don’t have to comply with general norms and standards. If you are a journalist who speaks any international language, and in Sri Lanka, which means English, you will be judged by those general standards of greater accuracy and knowledge. For print journalists, this is even more true than electronic journalists, because what you are talking about is not short-lived. "On the record" really means to be printed on paper.

When I was a boy and a teenager, Lake House had the best journalistic talents and personalities. The pages of the Lake House newspaper have the best minds and the most active debates. A few years after the state took over, all of this began to dry up, and with the change—decline—it was concentrated in my father’s dismissal from the position of editor-in-chief and editor. Subsequently, the energy of journalism shifted from mainstream media to periodicals and regional media-the "Lanka Guardian" founded by Mervyn in 1978 and Jaffner's "Saturday Review".

The birth of The Island is the rebirth of English mainstream media. The best old-school journalists and the most promising young people tend to join The Island. The most influential opinion makers appear in their regular columns or occasionally. The focus of mainstream English news has shifted; it has found a home.

For journalists whose fibers are not tough enough, this is not a place. Lake House was founded in the struggle for independence. The island was born in a more controversial era. It must report, reflect or even just reflect on the new dark periods of conflicts and crises, wars and interventions, revolutions and counter-revolutions, assassinations and terrorism. Or, more simply, the 1980s. Violent deaths, usually on a large scale, are the main story; the impetus for violent deaths is injected and outflowed.

very powerful. In the 30-year war with Prabakaran and the Tigers, it was this newspaper that took over the patriotic role played by Lake House in the struggle for independence. In the 21st century, it opposes appeasement of separatist terrorism.

Entering the third decade of the 21st century, although it has grown old like all of us and has been tortured by the ongoing crisis, it has not lost its temperament. It has the same work to do as the entire English newspaper. What we are witnessing now is as important as it was in the 1980s: social movements have proliferated unprecedentedly; social movements are not just political protests. English-language media must enable English-speaking readers to understand these social protests, while critically reflecting on the national policies that promote their movement and the movement itself—or the movement itself.

Mervyn de Silva wrote a message on the occasion of The Island’s 15th anniversary. I am fortunate to follow in his footsteps and take on the same task on its 40th anniversary.

Our special guest Sal Salgado said last week that he is making another original work and hopes he can even try his luck and win his fourth global music award.

He has won the Global Music Awards for "Forgiving" (2019), "Ama" (2020) and "Out There The Sun Is Shining" (2021). With his new repertoire, he wants to play four games in a row.

Sal said that the song has been completed.

"I did a demo with a German singer, but I prefer to let a Sri Lankan handle the human voice.

"I'm looking for a Sri Lankan female singer, and I got in touch with some of them. I hope that everything I think of will work."

Sal lives in Germany and is a versatile artist.

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