Sri Lanka’s CPC redevelops two Trinco oil tanks
The Morning: The Ceylon Petroleum Corporation (CPC) has completed the redevelopment of two of the 24 oil tanks at the Trincomalee Oil Tank Farm awarded to it under the Trincomalee Oil Tank Complex Development Project.Speaking to The Morning Business, CPC Managing Director Dr. Mayura Neththikumarage revealed that the two tanks had been developed on a trial basis in order to gauge their operability.He said that the two redeveloped tanks were being tested at present, with the tests indicating that the redevelopment had been successful.Responding to queries on the plans for the redevelopment of the remaining tanks, Dr. Neththikumarage said that the CPC had already commenced the tender process for the redevelopment of three more tanks, adding that it was currently in the bid evaluation stage.“We have commenced the tender process for three more tanks. Once those are completed, we will have developed five tanks. The remaining 19 tanks will also be similarly developed in phases,” he said.The CPC Managing Director revealed that it was estimated that the redevelopment of the three tanks would take around two years. He added that, in parallel with these tank redevelopment efforts, the CPC was working on developing a new jetty at the Trincomalee Harbour at present.Dr. Neththikumarage clarified that commercial operations relating to the two tanks already developed and the three to be redeveloped would commence only once the new jetty was completed.He said that the plan was to use the five tanks for the foreign sale of petroleum products, but admitted that they may be used for supplying the local market if required.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 Lanka IOC (LIOC), and 61 tanks to Trinco Petroleum Terminal Ltd. (TPTL), the latter on a 50-year lease, with the CPC having the majority stake in the subsidiary.Consequently, LIOC and the CPC entered into an agreement on 6 January 2022 for the joint development of the 61 tanks held by TPTL as a joint venture, with the CPC holding a 51% stake in the company and LIOC holding the remaining 49%.
OSL take:
Sri Lanka’s energy sector is emerging as a high-potential area for foreign investment, particularly as the country seeks to modernise ageing infrastructure and strengthen its energy security. The ongoing redevelopment of the Trincomalee Oil Tank Farm illustrates the scale of business/investment opportunities available in energy infrastructure. With CPC planning to develop its remaining tanks in phases and a new jetty also under development, Trincomalee has the potential to evolve into a major regional petroleum storage and distribution hub. Beyond petroleum, business/investment opportunities are expanding across renewable energy, power generation and transmission, energy storage, LNG-related infrastructure, and port-linked energy facilities. Sri Lanka’s strategic location along major Indian Ocean shipping routes further enhances the investment case for infrastructure serving both domestic and regional markets. For international investors, the opportunity is therefore not limited to supplying energy. It extends to building and modernising the infrastructure needed to store, transport and distribute it. As Sri Lanka works to attract private capital and technology into the sector, energy infrastructure could become one of the country’s more significant foreign investment frontiers.
| Article Code : | VBS/AT/20260903Z_1 |