The Ceylon Petroleum Corporation and Ceylon Petroleum Bulk Terminal Company are reportedly examining the feasibility of introducing a floating storage unit to bolster Sri Lanka’s additional fuel stock.
State-owned entities are contemplating the acquisition of a floating storage unit for crude oil as a mid-term solution to enhance Sri Lanka’s crude oil reserves, as per a report by The Sunday Morning, citing an authoritative source within these organizations.
The proposed strategy also encompasses preventing downtime at the aging Sapugaskanda refinery, which requires modernization.
Sri Lanka presently satisfies only 20-25% of its petroleum requirements through domestic production at the Sapugaskanda refinery.
Last year, the refinery was shuttered for several months due to financial challenges in securing crude oil, coinciding with Sri Lanka’s economic crisis.
The decision to extend the Sapugaskanda closure significantly inflated Sri Lanka’s petroleum imports, which were unsustainable given the country’s foreign exchange deficit.
Various projects are underway in Sri Lanka to expand storage capacity, sufficient for roughly 27 days, but delays have occurred due to financial constraints and a lack of investment capital.
