On Friday, July 14, Sinopec Energy Lanka (Pvt) Limited and the Board of Investment of Sri Lanka (BOI) inked a deal to establish and operate filling stations for fuel distribution in Sri Lanka.
Under the agreement, Sinopec has invested USD 100 million into the project, which encompasses the import, storage, and sale of fuel.
The initiative involves taking over 150 privately-owned fuel outlets currently managed by the Petroleum Corporation, as well as setting up 50 new fuel stations, according to the BOI.
The project has been granted a 20-year operation period under the supervision of Sinopec Energy Lanka, in compliance with the Sri Lanka Board of Investment Act No. 17. Sinopec will provide a range of petroleum products, including 92 and 95 Octane Petrol, 500 PPM Diesel, Diesel 10 COPPM, petroleum jet fuel, and other diesel and petroleum items.
Furthermore, the endeavor aims to offer value-added services such as automatic car wash and car service facilities, department stores, convenience stores, internet cafes, automated teller machines, and food courts. Sinopec also plans to expand into new energy services like photovoltaic systems, electric charging stations, battery swapping, and other related offerings in the local market.
The BOI emphasized that the existing agreement between Sinopec and the Energy Ministry, signed in May, will remain unaffected.
Sinopec is recognized as the largest oil and petrochemical products supplier, the second largest oil and gas producer in China, the largest refining company, and the third largest chemical company globally. It also boasts the second-highest number of gas stations worldwide. In 2021, the company secured the 5th position on Fortune’s Global 500 List.