New EPCC project to upgrade Colombo–Kolonnawa petroleum pipeline system
Daily FT: The Cabinet of Ministers at their meeting has approved the termination of the previously initiated procurement process and gave the green light for a new, comprehensive project to modernise the petroleum pipeline network linking the Colombo Port and the Kolonnawa refinery.
The decision follows repeated failures to identify a suitable investor under earlier proposals, despite the critical need to upgrade the ageing pipeline system.
“Currently, five decades-old pipelines transport imported petroleum products from the Colombo Port to the Kolonnawa refinery, but frequent leaks and structural weaknesses have raised serious concerns over safety, efficiency, and reliability,” Cabinet Spokesman and Minister Dr. Nalinda Jayatissa said at a post-Cabinet meeting media briefing recently.
He said under the newly approved plan, the Government will implement “The Project to Lay Pipelines from Kolonnawa to Port” as an Engineering, Procurement, Construction and Carry On (EPCC) project.
The initiative includes construction of two new pipelines—18-inch and 14-inch in diameter from the Dolphin Oil Tanker Jetty at Colombo Port to the Kolonnawa refinery, equipped to support in-line machinery inspections; laying of a 12-inch undersea pipeline from the Dolphin Jetty to the Seram Gate and necessary upgrades and adjustments to both the Colombo Port terminal and the Kolonnawa refinery terminal to accommodate the new infrastructure.
Dr. Jayatissa said the project is expected to significantly enhance the reliability, safety and capacity of petroleum transportation within the Western Province, reducing operational risks while strengthening the country’s fuel supply chain.
OSL take:
The expanding economic activities in Sri Lanka have resulted in the increase in demand in the energy industry. With Sri Lanka on the path to becoming a hub in the South Asian region supported by the country’s strategic positioning in the Indian Ocean in close proximity to international maritime lanes and the strong trade ties with many foreign countries, Sri Lanka’s energy industry and related sectors present a host of business/investment opportunities. The growth and profits recorded by businesses already engaged in the country’s energy industry and the increasing interest shown by foreign businesses/investors in the industry have made Sri Lanka’s energy industry and related sectors offer many lucrative ventures. Foreign businesses could also look at engaging in Sri Lanka’s energy industry through partnerships or joint ventures with local businesses.
| Article Code : | VBS/AT/20251125/Z_3 |