Sri Lanka’s CPC to request use of Hambantota oil terminal

ECONOMYNEXT – Sri Lanka’s state-run Ceylon Petroleum Corporation is planning to request the ports agency, which owns an oil terminal in the Southern port of Hambantota, to use the facility for oil imports, Petroleum Minister Chandima Weerakkody said.

"We have decided to ask Sri Lanka Ports Authority to give the terminal to us, so we can use it for oil imports," Weerakkody said.

He said Hambantota could accommodate 100,000-tonne fuel carriers, but only 40,000-tonne vessels are used to unload in Colombo at the moment. Imports through Hambantota could save two dollars a barrel, he said.

Although an ageing crude refinery is located in Colombo, which makes large volumes furnace oil, most of the light distillate requirement is imported.

Sri Lanka Ports Authority built the terminal with Chinese finance mostly for bunkering, but made large losses trying to sell the oil to ships, as oil prices fluctuated.

Petroleum sales is a not a core business of the port.  (Colombo/June03/2016)

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