The government is in discussions with India to construct an oil pipeline to transport fuel to the Eastern Port of Trincomalee.
The Trincomalee port currently has a World War II-era 99-tank farm, with a portion of the facility under the control of Lanka India Oil Corporation and the remainder under joint control of the Indian Oil Corporation and Ceylon Petroleum Corporation.
Manoj Gupta, Managing Director of Lanka India Oil Corporation, stated that discussions and studies were ongoing for a finished product pipeline.
The construction of an oil pipeline to the Trincomalee port is expected to boost Sri Lanka’s energy security and improve economic cooperation between the two South Asian nations.
India officials have also affirmed their commitment to helping the country boost its energy security, with New Delhi officials announcing that India will maintain its support for Sri Lanka in developing oil infrastructure, as the two nations share common interests,
India’s Petroleum and Natural Gas Secretary, Pankaj Jain, recently led a delegation to Sri Lanka to visit prospective projects, where he called for an increase in partnerships between the two countries in the energy sector.
Jain added that both nations should explore renewable energy sources, such as green hydrogen, ammonia, and compressed biogas to bolster their energy security.
Sri Lanka and India agreed to jointly develop the Trincomalee oil farm after five years of discussions at an estimated cost of $500 million.
The Trinco Petroleum Terminal Ltd will be 51% owned by CEYPTCO and the remaining portion by Lanka IOC. The company will develop 61 tanks and pipes connecting to the farm at $70 million
Power and Energy Minister Kanchana Wijesekera announced yesterday that discussions were held regarding a proposal by the Indian Oil Corporation (IOC) for an oil distribution pipeline that would connect Nagapattinam, Trincomalee and Colombo.
This proposal takes into account future refinery developments, oil and gas exploration, pipeline connections to domestic LPG terminals, and aims to target regional oil and gas export markets while meeting the energy requirements of both countries,” he Tweeted.
Minister Wijesekera said before finalizing the project scope for approval, the feasibility and technical requirements of the project will be thoroughly assessed.