Indo-Lanka oil pipeline

The Sri Lankan Government will form a committee to assess a proposal from the Indian Oil Corporation (I.O.C.) for an oil distribution pipeline connecting Nagapattinam, Tamil Nadu, to Trincomalee and Colombo. The proposal comes ahead of President Ranil Wickremesinghe's visit to New Delhi, India, at the invitation of Indian Premier Narendra Modi.

 

 

The Ministry of Power and Energy Secretary, M.P.D.U.K. Mapa Pathirana, stated that the committee would be appointed soon to evaluate the proposal, as expert help is needed to analyze it. The committee's composition will likely be decided after discussions between the Ministry of Power and Energy and the President's Secretariat.

 

 

The I.O.C. is interested in establishing a pipeline to Sri Lanka, connecting domestic storage potential to the new nine million metric tonnes per annum (M.M.T.P.A.) refinery at Nagapattinam, established through a joint venture by Chennai Petroleum Corporation Ltd. (C.P.C.L.) and I.O.C. Constructing a pipeline may be a more economical option for the I.O.C. compared to building a new refinery in Trincomalee Bay, as the I.O.C. already manages several long-distance oil pipelines in India.

 

 

Minister of Power and Energy Kanchana Wijesekera previously announced the discussion of the I.O.C. proposal, and he requested the I.O.C. to consider a two-way oil and gas pipeline, aligning with the Government's development plan for Trinco Tank Farm and energy hub. The project's feasibility and technical requirements will be assessed before final approval.

 

 

The Ceylon Petroleum Corporation (C.P.C.) and Lanka Indian Oil Company (L.I.O.C.), a subsidiary of I.O.C., signed an agreement to jointly develop the 1930s-era Trincomalee Oil Tank Farm, which was neglected for decades. The move faced criticism from Opposition parties and trade unions concerned about selling 'national assets to foreign companies. However, the C.P.C. stated that L.I.O.C. had pledged nearly $180 million to rehabilitate the oil tank farm and bring it back into operation. Attempts to contact the L.I.O.C. regarding the I.O.C. proposal were unsuccessful.