Govt eyes India for Trincomalee, China for Hambantota in oil refinery plans

Energy Minister Kumara Jayakodi has pledged to move forward with the development of the Trincomalee oil tank farm project.

Following the agreement with China’s Sinopec for an oil refinery in Hambantota, the Sri Lankan government is planning to establish a similar facility in Trincomalee, potentially with India’s cooperation, according to a Minister.

The agreement with Sinopec, signed during President Anura Kumara Dissanayake’s recent visit to China, involves a US $3.7 billion investment by the world-leading petroleum and petrochemical company.

Foreign Affairs Minister Vijitha Herath explained that the Hambantota oil refinery project would primarily target the export market, with 500 acres of land adjacent to the Hambantota port set aside for the facility.

The Minister also referred to the proposed multi-product petroleum pipeline between Sri Lanka and India, noting that both countries agreed to continue discussions on the project.

In addition to India, the United Arab Emirates (UAE) is expected to play a role in the proposed Trincomalee oil refinery project, as mentioned in the joint statement.

The joint statement signed during President Dissanayake’s visit to New Delhi also highlighted plans to develop the Trincomalee Tank Farms as a regional energy and industrial hub.

The government has already decided to develop the Trincomalee oil tank farm through Trinco Petroleum Terminal Ltd, a joint venture between Lanka Indian Oil Company (LIOC) and the Ceylon Petroleum Corporation (CPC).

Out of the 99 tanks in Trincomalee, 14 are operated by LIOC, and according to the agreement signed during Udaya Gammanpila’s tenure as Minister, the CPC will develop 35 tanks, while the remaining 50 will be developed jointly by CPC and LIOC.

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