Sri Lanka’s new energy plan proposes feasibility study on a new oil refinery
A new energy policy published this year has reportedly called on Sri Lanka’s state owned Ceylon Petroleum Corporation (CPC) to conduct a feasibility study on a new refinery as well as the expansion of its existing one.
The CPC has been asked to study the optimum capacity expansion of its existing refinery which has a capacity of 50,000 barrels per day, local media reports state.
According to reports, there have been efforts made in the past to boost its capacity to 100,000 bpd, and upgrade it with a hydro-cracker to be able to process heavier crudes for around 20 years.
It has also been reportedly mentioned about multiple unsolicited proposals on refinery expansions. However, formal requests for proposals have not yet been announced.
At the moment it can only process a limited number of light crudes.
The energy policy has reportedly has called on the CPC to commence a preliminary investigation on the building of a second refinery by mid-2021.
Meanwhile, a private investor has already commenced work on a refinery project in Sri Lanka’s southern city of Hambantota.
OSL take:
The government of Sri Lanka has been exploring the possibility of setting up a new oil refinery as well as upgrade the existing refinery facility. Measures have already been taken to upgrade the existing refinery and permission has been granted for a private sector refinery to be set up in close proximity to the country’s southern Hambantota Port. Foreign businesses/investors looking at opportunities in Sri Lanka could explore the project pipeline in Sri Lanka’s petroleum sector.
| Article Code : | VBS/AT/04102019/Z_7 |