Sri Lanka has commenced discussions on a multi-product petroleum pipeline connecting India’s Nagapattinam and Sri Lanka’s Trincomalee Oil Tank Farm and Colombo, but the future course of action about the project will depend on the feasibility study, which is yet to be conducted, and a detailed study which is also required.
Explaining that Sri Lanka is currently looking into energy-related projects, the Power and Energy Ministry underscored that it is prudent and beneficial in terms of Sri Lanka’s energy security situation to have multiple sources of energy. Towards this end, Sri Lanka has commenced discussions on the multi-product petroleum pipeline.
Even though the preliminary discussions regarding the proposed project have commenced, according to Ministry Secretary Dr. Sulakshana Jayawardena, the future course of action about the project will depend on the feasibility study.
“We have not entered into any commitment yet. However, if it materialises, it would be beneficial in terms of energy security because it would provide us an additional source (of energy),” he told The Daily Morning, explaining that proceeding with the proposed project, which is currently in the discussion phase, will require the conduct of a feasibility study and a detailed study. Moreover, he added that the materialisation of the said project will reduce the cost of importing fossil fuel, since at present, fossil fuel is imported via sea freight. In a context where the country’s refinery refines only one-third of the overall fossil fuel requirement, Dr. Jayawardena explained, the proposed pipeline would expand the country’s options concerning energy security.
In addition, Dr. Jayawardena expressed hope that the proposed refinery in Hambantota, which will commence as a Board of Investment project and is expected to fulfil approximately 20% of the local market’s fossil fuel requirement, will further strengthen the status of Sri Lanka’s energy security.
Recently, it was reported that the relevant discussions were held on the sidelines of the India Energy Week with the participation of the Chairpersons of the Indian Oil Corporation (IOC), the Lanka IOC (LIOC), the Ceylon Petroleum Corporation, and the Petroleum Development Authority of Sri Lanka. Power and Energy Minister Kanchana Wijesekera said on the social media platform X that technical studies, demand market analysis, financial analysis and business models will be utilised to decide on the mechanism needed for the project. According to him, the meeting had also paid attention to the investments and expansion of projects under the joint venture at the Trincomalee Oil Tank Farm, the Ceylon Petroleum Storage Terminals Limited, and the LIOC retail operations.
Source: the morning
