- Land acquisition process nearing completion
- RFP process to start as next phase
- Plans to build new refinery on a JV basis
In a move set to significantly boost the country’s domestic refining capacity, the Ceylon Petroleum Corporation (CPC) will be commencing the Request for Proposal (RFP) for the long-awaited expansion of its Sapugaskanda Refinery soon, while the land acquisition process is drawing to close, according to the corporation’s Managing Director.
Speaking to The Sunday Morning Business, CPC Managing Director Dr. Mayura Neththikumarage revealed that the Sapugaskanda Refinery expansion project had required the CPC to acquire additional land to facilitate the construction of a new refinery.
While the entire area of land to be acquired has been identified and demarcated, the entire land acquisition process is yet to be completed.
“We have demarcated and identified the lands that have to be acquired. Most of them have been handed over to us, while some have yet to be officially handed over,” he stated.
He further stated that the next step would be to initiate the RFP process, adding that the process would commence soon.
Dr. Neththikumarage revealed that they were looking to build the new refinery on a Joint Venture (JV) basis with a private investor who would be required to largely finance the project while the CPC would provide a share.
He added that under the Sapugaskanda Refinery expansion project, they were planning to construct the new refinery adjacent to the existing refinery and combine the two thereafter to create a single refining complex.
The CPC Managing Director noted that the Sapugaskanda Refinery had a capacity of around 50,000 barrels per day at present, adding that once the new refinery was completed, the complex as a whole was projected to have a total capacity of 100,000 barrels per day.
He also said that the existing refinery would be modernised under the project.
Dr. Neththikumarage further revealed that the project was expected to take around four years to complete.
He noted that once the new refinery comes into operation, the entirety of the 55–57% market share enjoyed by the CPC could be catered to by the Sapugaskanda Refinery.
According to the Auditor General’s report of the CPC for 2024, it was identified that a total of 196 plots of land, with an extent of 59 acres, were planned to be acquired for the new Sapugaskanda Refinery project.
The auditor further identified that “a total expenditure of Rs. 1,684.53 million had been incurred on land acquisition, including Rs. 171.39 million for a feasibility study conducted in 2021”.