CPC set to develop energy centre at Hambantota
Ceylon Petroleum Corporation has signed a memorandum of understanding with Hambantota International Port Group to build a strategic energy centre with a petroleum products terminal, for Sri Lanka.
CPC wants to build enough storage to supply Sri Lanka for three months. CPC’s existing storage facility can only store enough refined petroleum products to supply the country for one month, which currently does not meet the energy security requirements of the country.
It identified a 50-acre site around 15 km from the port, owned by Sri Lanka Mahaweli Authority, for the storage terminal, which will be used for domestic and export purposes. It will be connected to Hambantota Port via a pipeline. The port will provide port and terminal facilities and services, with stevedoring services for the import, export and transhipment of petroleum products and crude oil.
Johnson Liu, CEO of HIPG, said: “The company’s vision is to turn the port into an energy hub for South Asia.
“CPC will be a vital cog in its plans, the deal with the company will help strengthen the port’s position on the global maritime map. The port already provides some bunkering services with Sinopec Fuel Oil Lanka Limited and has established a state-of-the-art petroleum testing laboratory with Intertek Lanka.”
HIPG will sublease land in the port area for the construction and operation of the pipeline, with approval from the Sri Lanka Ports Authority.
Chairman of CPC, Sumith Wijesinghe, said: “With new investment and development in Sri Lanka, CPC’s product portfolio needs to be managed to suit the energy mix of the country if the company is to remain competitive.
“The partnership with HIPG will increase the storage facility of CPC to the expected capacity; thereby the impact of global fuel price fluctuations can be mitigated and it will drive CPC to minimise and save additional foreign currency outflows. Taking all these factors into account, I believe this partnership will put an end to the negative external factors of the country’s fuel market.”
For more information visit www.ceypetco.gov.lk
21st June 2021
