No decision has been made yet regarding the request for an additional 200 acres of land for the proposed $ 3.7 billion refinery by the leading Chinese global petroleum firm Sinopec to be built in Hambantota.
According to Energy Ministry Secretary Prof. K.T.M.U. Hemapala, several requests have been received from Sinopec and the Chinese Government, including for the allocation of extra land and for Government-supplied water.
He told The Sunday Morning that the matters in question would be reviewed by the project committee and subsequently directed to the Cabinet Appointed Negotiation Committee (CANC), chaired by a ministry secretary.
The recommendations would then be forwarded to the Minister for further action, he added.
He also revealed that Cabinet papers would be prepared based on these reviews and presented for final approval.
Prof. Hemapala also stated however that it was difficult at present to estimate the financial profit Sri Lanka might earn from offshore sales and bunkering.
With the project committee, which is expected to provide its findings to the CANC, still analysing these aspects, he stated that no conclusive information had been received thus far.
According to the agreements signed between the two parties, a report on the project is expected to be finalised within one month.
When questioned about plans to sell to the local market, he stated that this aspect was also still under consideration.
Foreign Affairs Minister Vijitha Herath expressed last week the Government’s intention to resolve issues related to land allocation and other matters concerning Sinopec’s proposed refinery as soon as possible.
Regarding the timeline for breaking ground on the project, Herath stated it would commence as soon as possible. “We are willing to continue a fast-track development programme,” he said.
Herath also noted that while the exact lease duration for the land was yet to be finalised, Sinopec’s initial request had been for 500 acres, with an additional 200 acres currently under consideration.
The Memorandum of Understanding (MOU) for the refinery was signed during President Anura Kumara Dissanayake’s four-day visit to Beijing recently.
According to the President’s Media Division (PMD), this marks the highest foreign investment secured by the Government.
Under this investment, a state-of-the-art oil refinery with a capacity of 200,000 barrels per day will be constructed in the Hambantota region.
The PMD also highlighted that this project was envisioned to stimulate the country’s economic growth while improving the living conditions of low-income communities in the area.