Sri Lanka to double fuel storage, start India-Japan tripartite LNG plant in 2020
ECONOMYNEXT- Power and Energy Minister Mahinda Amaraweera has said Sri Lanka’s crude oil tank capacity will be doubled by 2020, while a tripartite LNG terminal and power plant agreement signed with India and Japan will be started.
In 2017, Sri Lanka had faced a three-day crisis due to a shortage of fuel. Amaraweera, at a meeting held at the Ceylon Petroleum Corporation, called for uninterrupted supply of quality fuel, as there was rising public outcry.
He said the government is planning for the current two-week fuel storage capacity to be increased to four weeks by next year to ensure there is no shortage of oil.
While the previous regime had planned to expand the fuel storage tanks at the Kolonnawa Terminal, the new government would also evaluate the establishment of new tanks or the possibility of reacquiring and rehabilitating some of the oil tanks in Trincomalee currently on lease to India , the ministry media unit said.
Amaraweera had also outlined the need to start the tripartite project signed among Sri Lanka, India and Japan in 2020.
A government-to-government agreement exists to build a LNG terminal, a 300MW power plant and an LNG pipeline in Kerawalapitiya.
A new oil distribution pipeline will also be constructed from Colombo Port, Amaraweera had said.
Plans had been drawn earlier to build a pipeline from the port to the Kolonnawa Terminal, which would join an interconnecting pipeline to the Muthurajawela and Sapugaskanda terminals.
In order to reduce traffic congestion caused by transport of oil by road from Western Province to the other provinces, trains will be utilized, Amaraweera said.
He said a dedicated train would be utilized for fuel transport, and a new engine would be purchased if necessary.
Opposition did not support the supplementary estimate as govt wanted to increase debt ceiling-Patali
Amaraweera called on CPC officials to work efficiently to turn profits at the state institution. (Colombo/Dec13/2019)
Economic Intelligence Unit of the Ceylon Chamber of Commerce
Jehan Perera - Executive Director National Peace Council