China’s Sinopec sets up fuel oil unit in Sri Lanka
China Petroleum and Chemical Corp, known as Sinopec Corp, said on Monday it has set up a fuel oil company in Sri Lanka as it looks to supply fuel to ships along a major maritime route, the Reuters news agency reported.
The new unit, called Fuel Oil Sri Lanka Co Ltd, has been registered in Hambantota on the southern tip of the country, according to a report on the website of Sinopec Group, parent of Sinopec Corp.
Fuel oil is a refined product mostly used as bunker fuel for ships and is also burned in power stations.
In March, India’s Accord Group and Oman’s Ministry of Oil and Gas signed a $3.85 billion deal to build a 200,000 barrel-per-day oil refinery near Hambantota port, in the biggest single pledge of foreign direct investment ever made in Sri Lanka.
Sinopec has set a company-wide target of 10 million tonnes of production capacity by 2020 to supply low-sulphur bunker fuels that meet the cleaner emission standards set by the International Maritime Organization (IMO).