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Chinese oil pipeline still in limbo  

27 Dec 2020

No decision has been taken regarding the controversial and expensive Chinese oil pipeline renovation project submitted and approved by the previous Cabinet last year, which is still under evaluation.  Energy Minister Udaya Gammanpila said the project has not been scrapped by the President although some media has reported that such a decision has been taken.  “The President did not speak with me regarding the project and no such decision has been taken. It’s an utter lie,” he told The Sunday Morning.    The proposal was submitted to the Cabinet by former Petroleum Industries Minister Kabir Hashim last October to renovate the dilapidated oil pipeline at a cost of Rs. 15 billion by China Petroleum Pipeline Bureau (CPPB), The Sunday Morning learnt.  However, with the vehement opposition by the trade unions (TUs) last year, the project had not proceeded. Yet, the project has cabinet approval, as the previous Minister or the current Minister did not take any action to terminate the project.  The TUs attached to the Ceylon Petroleum Corporation (CPC) raised concerns over the delay by the Minister to terminate the expensive project and handover the renovation work to local engineers at the CPC and Ceylon Petroleum Storage Terminal Ltd. (CPSTL) at a total cost of Rs. 1,900 million for the renovation of both 12 and 18-inch pipelines instead.   Jathika Sevaka Sangamaya (JSS) CPC branch President Ananda Palitha said however that the decision taken by the President to cancel the project is welcomed by the TUs.  “Earlier, for the renovation of a 6-inch single line, it cost only Rs. 350 million by the local engineers but considering the rupee depreciation, as estimated by the engineers attached to the CPC and CPSTL, it would cost only around Rs. 1,900 million to renovate the dual pipeline system,” Palitha stressed.   


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