The Ceylon Petroleum Corporation (CPC) has sought approval for a multibillion rupee storage and distribution terminal in a 100 acre land in Trincomalee with the aim being turning this into a South Asian petroleum hub.
A Board Paper has been submitted for the proposed project which is estimated to cost more than Rs 10 billion.
The move came in the wake of the failure of the CPC to acquire Trincomalee’s 24 oil tanks leased out to the Lanka Indian Oil Corporation.
Under the proposal, the CPC plans to construct 24 tanks of a capacity of 10,000 Mt each with infrastructure such as pipelines, electrical control systems and buildings.
A Sri Lanka Ports Authority (SLPA) site has been earmarked for the proposed project. It is to be obtained under a lease.
The proposed project has been justified on the basis that a CPC study has identified that there should be a sufficient fuel storage capacity to supply at least country’s demand for three months to face the unpredictable global situation in the future.
On the existing storage capacity in Kolonnawa and Muthurajawela cannot be expanded and therefore the new plan was considered as the best course of action, an official said.
The CPC said that establishment of the facility in Trincomalee would help to meet the fuel needs of 15 districts in the Northern, Eastern, North-central and parts of North-western and Uva provinces.
The CPC is to seek cabinet approval for a Rs 30 million budget to get the service of a competent consultant to undertake the master plan for the proposed energy hub at Trincomalee through an international market survey.
Source : Sunday Times
