Shell-RM Parks and Sri Lanka’s CPSTL sign agreement for fuel storage, distribution
Daily FT: The Ceylon Petroleum Storage Terminals (CPSTL) signed an agreement with US-based petroleum products distributor ‘Shell-RM Parks’ recently.
The relevant agreement was signed at the CPSTL Head Office, pertaining to the storage and distribution of fuel in Sri Lanka.
As per the newly signed agreement, CPSTL is now able to store and distribute ‘Shell-RM Parks’ petroleum products in Sri Lanka.
On 8 June 2023, the Government of Sri Lanka signed an agreement with RM Parks Inc., in collaboration with Shell PLC for a long-term contract for the importation, storage, distribution, and sale of petroleum products in Sri Lanka.
“US-based petroleum company RM Parks in a collaboration with Shell PLC signed the agreement to enter the Sri Lanka petroleum business. RM Parks will be the 4th supplier to enter the domestic market and will operate under the ‘Shell’ branding.”
“They signed a 20-year agreement to import, distribute and sell petroleum products through 150 fuel stations allocated from CPC,” Sri Lanka’s Power and Energy Minister Kanchana Wijesekera had said.
On 21 November, RM Parks Inc. signed a $ 110 million agreement with the Board of Investment (BOI) of Sri Lanka to bring Shell products to the island.
“RM Parks Inc. and Shell collaboration will operate 200 fuel stations and provide services of mini-supermarkets with EV charging facilities,” the BOI had said.
OSL take:
The expansion in Sri Lanka’s energy industry in line with the country’s overall economic growth has created many new business/investment opportunities. Key among these new business/investment opportunities is Sri Lanka’s need to further develop and expand fuel storage capacities in the country. Sri Lanka is also looking at developing and expanding the country’s oil refining capacity. Accordingly, Sri Lanka is to enter an agreement with the Chinese on setting up a refinery in Hambantota while the US has also expressed interest in setting up a new refinery in the country. All these are indicative of not only the expanding business/investment opportunities in Sri Lanka’s energy industry, but also the identification of the growing business potential in the local energy sector. These opportunities are bound to see a further expansion since Sri Lanka is fast becoming an emerging business destination in the South Asian region. Foreign businesses/investors looking at business/investment opportunities in the South Asian region could look at the emerging opportunities in Sri Lanka.
| Article Code : | VBS/AT/20240221/Z_8 |