Sri Lanka’s CPC prepares business plan to redevelop 14 oil tanks in Trincomalee
The Morning: The Ceylon Petroleum Corporation (CPC) has completed the preparation of a business plan for the redevelopment and utilisation of 14 tanks under the Trincomalee Oil Tank Complex Development Project, according to the Ministry of Power and Energy. Speaking to The Sunday Morning Business, Ministry of Power and Energy Secretary M.P.D.U.K. Mapa Pathirana stated that the business plan for the redevelopment of the Trincomalee Oil Tank Farm in China Bay had been completed and that under phase 1 of the Trincomalee Oil Tank Complex Development Project, 14 tanks would be developed to determine the viability of the project.
He further stated: “The developed Trincomalee Oil Tanks will be utilised not only for storing and supplying fuel for local demand and instead will be used for arbitrage trading with foreign countries and entities.” Explaining further, Pathirana stated that currently no date had been fixed for the commencement of the construction process and that certain other procedural steps had to be completed first. The Trincomalee Oil Tank Complex Development Project was approved by the Cabinet of Ministers on 4 January 2022. Accordingly, it was decided that 24 of the 99 tanks would be given to the CPC, 14 tanks to the Lanka Indian Oil Company (LIOC), and 61 tanks to the Trinco Petroleum Terminal (Pvt) Ltd., the latter on a 50-year lease, with CPC having the majority stake in the subsidiary. Consequently, the LIOC and the CPC entered into an agreement on 6 January 2022 for the joint development of the 61 tanks held by Trinco Petroleum Terminal as a joint venture. Accordingly, the CPC will hold a 51% stake in the company and LIOC will hold a 99% stake in the company.
Sri Lanka’s ongoing energy crisis has opened many business/investment opportunities in the country’s energy industry. Local authorities are focused on developing the country’s refinery capacity as well as fuel storage facilities in order to address the crisis in the long term. These projects have opened up a host of business opportunities in the energy sector development programme. Also, there are business opportunities in providing the fuels required by the country. With the expansion of economic activities in the country and the push to make it an emerging business destination in the South Asian region have all increased the business potential in Sri Lanka’s energy industry.
|Article Code :||VBS/AT/18072022/X_1|