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No reply from CPC to CEB’s naphtha request

21 Mar 2022

  • CEB in a fix following Sapugaskanda closure
  • CPC senior official says ‘no need to worry’ 
BY Pamodi Waravita With the Sapugaskanda Oil Refinery being unable to provide naphtha oil to the Ceylon Electricity Board (CEB) following its closure, the CEB finds itself in a tight spot as it is yet to receive a response from the Ceylon Petroleum Corporation (CPC) to its request for 24,000 MT of naphtha oil made one week ago. “We asked for naphtha from the CPC but we do not know whether they are in a position to supply this to us. We have received no response yet,” a CEB official told The Morning yesterday (20). In a letter to the CPC on 14 March, the CEB had noted that the Sapugaskanda Oil Refinery is due to close at the end of the month, and as such had requested the CPC to order 24,000 MT of naphtha, on behalf of the CEB, required for the generation of the Kelanitissa Combined Cycle Power Plant (KCCP). The CPC temporarily ceased operations at the Sapugaskanda Oil Refinery yesterday, due to the lack of adequate stocks of crude oil for refining activities, according to the Ministry of Energy. When contacted, a senior CPC official told The Morning yesterday that the CEB hopes to receive a naphtha shipment soon to fulfil the CEB’s request. However, he was unable to provide us with specific details. “There is no need to worry,” he added. This is the third time since December 2021 that the Sapugaskanda Oil Refinery has closed down; the first two times were due to the forex crisis impacting imports. A series of issues has plagued the country's energy-related sector since the beginning of the year. Since January 2022, the CEB has been struggling to find fuel for its thermal power stations. CPC, which imports fuel, has been throttled by the forex shortage in the country. Ultimately, the Sri Lankan public has been forced to endure lengthy power cuts lasting hours per day following routine shutdowns of the thermal power stations.


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