The government of Sri Lanka is spearheading plans of reintroducing bunkering operations at the Sri Lankan port of Trincomalee, reports Economy Next.
It quoted Minister of Petroleum Resources Development Arjuna Ranatunga saying state-owned petroleum refiner and retailer Ceylon Petroleum Corporation (CPC) may consider a joint development with Lanka Indian Oil Corp. (LIOC) to restart an unused oil tank farm at Trincomalee.
LIOC has leased part of the tank farm with up to 99 tanks under an agreement between the two governments in 2003; however, it has only used 15 tanks and the remaining have been unused for 15 years.
Ranatunga suggested a joint government arrangement with LIOC and CPC to repair the oil tank firm, where CPC will be allowed to use 16 tanks; the initial joint venture proposal has already been approved by the Cabinet of ministers but a detailed plan awaits.
“The CPC aims to use the tanks to provide bunkering for ships and to store and distribute refined petroleum products in the north-east which is now supplied from Colombo which is more costly,” said Ranatunga at a Colombo press conference.
The Sri Lanka government will also reissue CPC a bunkering license for it to return to the marine fuels business, reports the Mirror Business.
“Most likely, we might seek investors for development. We might invite some investors and industry stakeholders to come and work with us to develop these tanks,” Ranatunga said.
He estimates the cost of repairing the oil tank farm to be approximately USD $85 million, at USD $1 million per tank.
Published: 18 October, 2018
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