Construction of a dedicated Jet A-1 aviation fuel pipeline connecting Muthurajawela to Bandaranaike International Airport (BIA), along with two new petroleum storage tank systems, commenced today (02) under the patronage of President Anura Kumara Dissanayake.

According to the President’s Media Division (PMD), the projects are being implemented by the Ceylon Petroleum Corporation (CPC) and Ceylon Petroleum Storage Terminals Limited (CPSTL) as part of the Government’s efforts to strengthen national energy infrastructure, improve fuel supply security, reduce transportation costs and meet future aviation fuel demand.

Under the aviation fuel infrastructure project, a dedicated 21-kilometre-long underground pipeline, measuring 10 inches in diameter, will be constructed to transport Jet A-1 fuel directly from the Muthurajawela tank complex to Bandaranaike International Airport in Katunayake.

The project also includes the construction of five new Jet A-1 fuel storage tanks with a combined capacity of 92,000 cubic metres.

These will comprise two large tanks with a capacity of 30,000 cubic metres each, two medium-sized tanks of 15,000 cubic metres each and an additional tank capable of storing 2,000 cubic metres of aviation fuel.

The PMD stated that the dedicated pipeline and associated storage facilities are expected to strengthen the reliability of aviation fuel supplies while reducing transportation expenses and providing sufficient storage capacity to accommodate the future requirements of Sri Lanka’s aviation sector.

The aviation fuel pipeline and tank complex project is scheduled to be completed within 30 months.

Meanwhile, construction also commenced today on three additional petroleum storage tanks at the Muthurajawela Terminal under a separate project undertaken by CPSTL.

The new storage system will comprise two tanks with a capacity of 15,000 cubic metres each and a third tank with a capacity of 10,000 cubic metres, providing an additional 40,000 cubic metres of petroleum storage capacity upon completion.

According to the PMD, this project is intended to further strengthen and expand the country’s petroleum storage infrastructure, improve operational flexibility and support the uninterrupted distribution of fuel products to meet growing national energy requirements.

The CPSTL storage expansion project has a contractual period of 18 months and is scheduled for completion in April 2028.

Both projects will collectively introduce eight new fuel storage tanks, providing a combined storage capacity of 132,000 cubic metres at Muthurajawela.

The PMD further stated that the new tanks are being constructed in accordance with relevant international standards and recognised industry best practices, with particular attention to safety, reliability and operational efficiency.

The additional storage facilities are also expected to strengthen Sri Lanka’s fuel reserves and enhance the country’s ability to maintain a stable petroleum supply. (Newswire)

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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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