CPC to construct oil storage facility in Trincomalee

COLOMBO (News1st): The Ceylon Petroleum Corporation is taking steps to construct an oil storage facility in the vicinity of the Trincomalee harbour under a joint venture with India. Ceylon Petroleum Corporation Chairman Sumith Wijesinghe told News 1st that the Sri Lanka Ports Authority has agreed to hand over 100 acres of land under its purview for the construction of this facility. He noted that a Memorandum of Understanding will be signed with the Sri Lanka Ports Authority for the construction of the storage facility that will be called the South Asian Petroleum Hub. "We are holding talks with the Indian Oil Corporation and other entities to transform this into a project that would benefit the country," CPC chair Sumith Wijesinghe said. He added that the CPC has also requested for 100 ccres of land belonging to the Mahaweli Authority near the Hambantota Port for another petroleum project. As the Ceylon Petroleum Corporation plans to embark on a project to meet local fuel demand, the Hambantota International Port Group under which the port has been given to China on a 99-year lease period has begun fuel bunkering services. The Hambantota International Port Group had begun the project in partnership with the local company of Chinese giant Sinopec, identified as Sinopec Fuel Oil Lanka Limited and a local partner as well. A floating oil platform serves as a key component in the oil bunkering project that saw a large amount of fuel, first being purchased by a commercial vessel plying from Chennai to Suez. The Belt and Road Initiative in Sri Lanka tweeted that the objective of the project is to transform the Hambantota Port into a South Asian petroleum hub that offers high quality and secure services.