Sri Lanka to call for bids for new oil refinery in Sapugaskanda after feasibility study
Sri Lanka’s Energy Ministry is to reportedly call for bids for an investor to launch the project to construct a new oil refinery in Sapugakanda after the completion of the proposed feasibility study for the planned new refinery.
Secretary to Sri Lanka’s Energy Ministry, K.D.R. Olga has told The Sunday Morning Business that competitive bids will be called under the build-operate-transfer (BOT) basis for the selection of a suitable investor for the new refinery. The investment could be made either by a local or a foreign investor, and the project would be a public-private partnership (PPP).
The amount of the investment is yet to be decided, and Olga has stated that it would be a result of the feasibility study.
However, she had not disclosed when the feasibility study will be completed.
In November, the Cabinet of Ministers had approved a proposal to conduct a feasibility study to determine the scope as well as technical, operational, and financial feasibility of this proposed project.
The proposal was submitted by Sri Lanka’s Minister of Energy Udaya Gammanpila.
In September, Olga had told The Sunday Morning Business that the government of Sri Lanka was looking for investors to construct two oil refineries in the country, with one of them being expected to be built exclusively for export purposes while the other one is to fully cater to the local oil demand.
Hambantota was confirmed as the location of the refinery that would be built for export purposes.
To cater to the local demand, a refinery has been planned to be built on the premises of the Sapugaskanda Oil Refinery. This new refinery is expected to be larger than the existing Sapugaskanda refinery.
According to the Ministry of Energy, the Sapugaskanda Oil Refinery refines about 65,000 barrels per month, which caters to less than 20% of the national oil requirement. Upon the construction of the new refinery on the same premises, the country could refine about 100,000 barrels per day and successfully accommodate the national requirement 100%.
Sri Lanka’s ongoing development programme covers all key economic sectors in the country. This has created an expansion in the business/investment opportunities in Sri Lanka. Also, Sri Lanka is fast becoming a business hub in the South Asian region given its geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka’s development agenda.
|Article Code :||VBS/AT/20210113/Z_1|