Leaky pipelines raise costs for Sri Lankan oil refinery

COLOMBO (EconomyNext) – Sri Lanka’s sole oil refinery operated by the Ceylon Petroleum Corporation (CPC) is forced to incur high demurrage charges on imported shipments owing to leaking pipelines which reduce unloading rates.

“Some of the existing pipeline systems are  over 80 years old and maintenance of these has been neglected leading to frequent leaks during operation causing large losses to the state,” , Minister of Power and Energy Champika Ranawaka said.

“Due to the reduced pumping rates on these pipelines, often demurrage is incurred during imports,” he told a forum organized by the Public Utilities Commission of Sri Lanka on the downstream petroleum industry.

Ranawaka said the CPC had begun a project to modernize its pipeline infrastructure.


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