• The investment will restore 21 tanks at the Trincomalee oil farm, increasing SL’s fuel storage capacity
• The 3-year project is part of a broader government plan to develop the strategic Trincomalee facility

Sri Lanka expects to invest Rs. 7 billion for the renovation of the 21 oil tanks owned by Ceylon Petroleum Corporation (CPC) at the Trincomalee oil tanks, the Ministry of Energy said.

In a response tabled at Parliament last month to an opposition query, the Ministry of Energy said that the government expects to invest Rs. 7,010 million for the renovation of 21 oil tanks owned by the CPC among the Trincomalee oil tanks.

CPC owns a total of 24 oil tanks from the 99 oil tanks in Trincomalee, where they had leased out three oil tanks for Prima Lanka (Pvt) Ltd. in 2001 for Rs. 100 each for a five year period, where CPC gets Rs. 3,600 as annual lease payments from the three oil tanks, Ministry of Energy revealed.

The proposal to develop 24 tanks at the Upper Tank Yard in Trincomalee under the CPC got cabinet nod in March this year.

Sri Lanka Government, CPC, Ceylon Indian Oil Company, and Trincomalee Petroleum Terminal Company signed an agreement in January 2022 for the ownership, development, and utilisation of the China Port Oil Tank.

As per the provisions of that agreement, 24 tanks at the Upper Tank Yard in Trincomalee had been leased to the CPC for 50 years from the date of commencement of the agreement.

The CPC has planned a three-year project and conducted initial project activities, inclusive of a feasibility study, to complete the development of the said oil tanks within three years.

If the CPC oil tanks are brought back into operational status, it would be a much welcomed boost to Sri Lanka’s energy security, as the tanks will offer a significant increase in storage of crude oil or petroleum products like diesel and petrol.