Sri Lanka green-lights $ 4 billion Sinopec deal for new petroleum refinery in Hambantota
Daily FT: The Cabinet of Ministers has approved awarding the contract to China Petroleum and Chemical Corporation (SINOPEC) to forge an agreement for the establishment of a petroleum refinery and associated product processing center in Hambantota.
Power and Energy Minister Kanchana Wijesekera announced the decision via ‘X’ recently.
The proposed refinery project is expected to invest a minimum of $ 4 billion to be built in the Industrial Zone at the Hambantota Port.
Sinopec, stands as the largest oil and petrochemical products supplier and the second-largest oil and gas producer in China, bringing its expertise to the table for this venture, signaling a strategic partnership between Sri Lanka and China.
The firm holds the distinction of being the largest refining company and the third-largest chemical company worldwide. The company’s extensive network comprises a large number of gas stations, ranking it second globally. In 2021, Sinopec secured the fifth spot on Fortune’s Global 500 List.
OSL take:
Sri Lanka’s ongoing economic activities and restarting of the development programmed have opened up new business/investment opportunities. Most of these opportunities are in the power and energy industry given the growing demand in line with the overall expansion in the country’s economy. With Sri Lanka working towards becoming an emerging business destination in the South Asian region, these opportunities would undoubtedly see a further expansion. Also, Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed with other countries have further boosted the country’s attraction as an emerging business destination. The growth and profits recorded by local businesses engaged in the power and energy industry is indicative of the growth and business potential in these sectors. The entrance of foreign businesses to Sri Lanka’s power and energy industry as well as the interest shown by more foreign businesses to do business in the country’s power and energy sectors are clear indications of the increasing business potential. Foreign businesses/investors could therefore confidently explore the expanding opportunities in Sri Lanka’s power and energy industry.
| Article Code : | VBS/AT/20231201/Z_1 |