Sri Lanka's state-owned oil company Ceylon Petroleum Corp (CPC) has reached an agreement with Indian oil group Indian Oil Corp (IOC) to build a second refinery with a capacity of at least 100,000 bbl/d in the eastern port city of Trincomalee. The production of the refinery would mainly be exported. The cost of the project remains to be determined.
Ceylon Petroleum Corp (CPC) already operates a 50,000 bbl/d refinery in Sapugaskanda, the sole in Sri Lanka, and plans to refurbish the facility; commissioned in 1969, the refinery was designed to run on Iranian crude and international sanctions forced CPC to raise oil product imports. A capacity increase is also under consideration.
Sri Lanka is also seeking to boost its gas consumption. A 500 MW coal-fired power plant in Sampur in Trincomalee will be converted to gas and India is offering Sri Lanka an integrated plan to develop gas infrastructures in the country (LNG import terminal, gas pipeline, distribution, and retail outlets); these projects would be carried out by Indian companies Petronet, IOC and GAIL.
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