The proposal to develop twenty-four (24) tanks at the Upper Tank Yard in Trincomalee under the Ceylon Petroleum Corporation (CPC) has received a Cabinet nod. 

The Sri Lanka Government, Ceylon Petroleum Corporation, Ceylon Indian Oil Company, and Trincomalee Petroleum Terminal Company signed an agreement in January 2022 for the ownership, development, and utilization of the China Port Oil Tank.

As per the provisions of that agreement, 24 tanks at the Upper Tank Yard in Trincomalee had been leased to the CPC for 50 years from the date of commencement of the agreement. 

The CPC has planned a three-year project and conducted initial project activities, inclusive of a feasibility study, to complete the development of the said oil tanks within three (03) years. 

The approval of the relevant parties, including the Road Development Authority, Sri Lanka Railways, and the Marine Environment Protection Authority, had already been taken for that project. 

Accordingly, the Cabinet of Ministers approved the proposal presented by the Minister of Power and Energy to implement the proposed project using funds of the CPC without burdening the Treasury. (Newswire)

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President Anura Kumara Dissanayake has announced plans to establish a joint venture between the Ceylon Petroleum Corporation (CPC) and an Indian company to develop the remaining Trincomalee Oil Tank Complex.

The initiative aims to modernize the historic facility and position Sri Lanka as a key player in the global oil trade.  

The Trincomalee complex, consisting of 99 tanks with a total storage capacity of 1 million metric tons, has largely remained underutilized since its acquisition from a British company in the 1960s.

President Dissanayake said that 24 tanks have been allocated to the CPC for regional oil distribution, while 9 to 10 tanks are managed by the Indian Oil Corporation (IOC).

“We are in discussions to establish a joint venture between the CPC and an Indian company to manage these tanks. We aim to upgrade these facilities, refine crude oil, and store it for export to the global market, thereby transforming Sri Lanka into a key player in the international oil trade,” he said. (Newswire)

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Cabinet approval has been granted to follow the relevant procurement process to select a prospective entrepreneur/investor to implement phase one of the development plan linked to the Upper Tank area of China Harbour in Trincomalee.

According to the government, the fuel tanks in the Upper Tank area of China Harbour of Trincomalee are fortified with 99 fuel container tanks.

As per a decision at a Cabinet meeting in January 2022, approval was granted to lease 61 tanks from it to Trincomalee Terminal Private Limited for a period of 50 years. 

The initial steps including the performance of a feasibility study to develop 61 oil tanks have commenced, while the feasibility report has recommended developing this project within 16 years under 07 phases.

Under the first phase, it has been planned to renovate 09 productive tanks, lay a line for approximately 1.75 kilometres, and construct other supporting facilities. 

The business model of building, operation and transfer (BOT) has been proposed to be implemented for the execution of this project. 

Accordingly, the Cabinet of Ministers approved the proposal by the Minister of Electricity and Power for following the relevant procurement process to select a prospective entrepreneur/investor to implement the proposed development plan under phase one. (NewsWire)

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