China’s Dongming Petrochemical plans refinery in Sri Lanka: report
ECONOMYNEXT – China’s ShanDong Dongming Petrochemical Group is planning a refinery near Sri Lanka’s Hambantota port in the Southern tip of the island, a media report said.
Sri Lanka’s The Sunday Times newspaper said the refinery was one of the deals worked on following a visit by International Trade Minister Malik Samarawickrema to Beijing earlier in July.
Dongming Petrochemical has subsidiaries in Singapore and Hong Kong.
Refineries have been proposed for Hambantota in the past, but they have fallen through as they sought to make the real profits by selling high priced power to state-run Ceylon Electricity Board with a plant set up with the refinery.
Sri Lanka now imports more than half the requirement of refined products from abroad. The country’s only refinery is also inefficient and operates due to tax difference between imported refined products and domestically made fuel.
The CEB’s finances have already been hit by purchasing liquid fuel fired power.
The report also said a liquefied natural gas fire 500Mega Watt power plant which could be expanded to 1000MW was also planned for Hambantota by China Machinery and Engineering Corporation.
Hambantota port which was built with a Chinese loan is also expecting investment from China Merchant Holdings.
Sri Lanka has been identified as a ‘Silk Road’ station on China’s One Belt One Road initiative. (Colombo/July20/2016)