Sri Lanka calls investors to double refinery capacity as BOT project
EconomyNext: Sri Lanka’s state-run Ceylon Petroleum Corporation has called expression of interest from private investors to expand its 50,000 barrels per day refinery into 100,000 barrels or to set up an entirely new one in the same premises.
“This Development and Expansion Project represents a strategic opportunity to establish a long-term partnership within Sri Lanka’s energy sector,” the EOI document said.
“It will help strengthen the country’s energy security, reduce dependence on imported refined petroleum products, and enhance overall economic resilience.
“Your organization’s proven expertise in refinery development, infrastructure investment, and energy sector operations positions you as a potential key partner in this significant national initiative.”
The investor will be able to use existing facilities at CPC’s Sapugaskanda refinery complex and associated infrastructure.
These include an offshore point buoy mooring system where a 140,000 deadweight tonne tanker could be berthed.
A 36″ submarine and 24″ onshore pipeline up to Sapugaskanda.
Tanks to store 425,000 cubic metres of crude storage including the Orugodawatta terminal
Around 100,000 cubic meters of tanks for intermediate and finished products within the refinery site.
Water supply from the Kelani River and power supply.
There was a total land area of 324 acres including 95 acres of the existing refinery, 106 acres of bare land and 23 acres which are now being acquired and another 100 identified for future acquisition.
The investor is expected to finance the refinery giving a share to CPC for the facility and transfer the plant to CPC at the end of the concession period.
OSL take:
Sri Lanka’s expanding economic activities have resulted in an increase in demand in the country’s energy industry. As the country is poised to become a regional hub with the advantage of Sri Lanka’s geographical positioning in the Indian Ocean, there are many business/investment opportunities emerging in the country’s energy industry. Sri Lanka’s move to open the country’s retail fuel market as well as focus on uplifting its fuel storage and refining capacity indicates the increasing business potential in the local energy industry. Sri Lanka’s position near the international shipping lanes had also opened business/investment opportunities in the oil bunkering sector. It is amidst all these developments that the Sri Lankan government is focused on expanding the country’s oil refining capacity while also working on a new oil refinery project with China. These movements further indicate the expanding business/investment opportunities in Sri Lanka’s energy industry. Given the country’s ongoing growth trajectory as well as its emerging regional hub status, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka’s energy industry as well as related sectors. The growth and profits recorded by businesses already engaged in the country’s energy industry also indicate the prospect of further expansion of operations through local and foreign collaborations.
| Article Code : | VBS/AT/20250915/Z_2 |