Energy Minister updates on developments in sector

Power and Energy Minister Kanchana Wijesekera 

• Sinopec’s first cargo to arrive by end of month, marking start of their operations in SL
• Intends to sign agreement with Australia’s United Petroleum within next couple of weeks Refutes claims of exploitation, emphasises importance of liberalised market, growth 
• Says country’s commitment to competitive energy market benefits both investors, public

By Charumini de Silva

Power and Energy Minister Kanchana Wijesekera on Tuesday spoke of the positive developments in the sector to foster a competitive and vibrant market that benefits all. 

He disclosed that Sinopec’s first cargo is expected to arrive by the end of this month, signifying the commencement of its contributions to Sri Lanka’s energy landscape. 

“Sinopec is currently in the process of registering as a Board of Investment (BOI)-approved company to ensure compliance with regulatory requirements and fostering a transparent investment environment,” he told journalists at the Presidential Media Centre titled ‘Collective path to a stable country’.

On 27 March the Cabinet of Ministers approved the award of licences to China’s Sinopec, Australia’s United Petroleum, Australia and US-based RM Parks in collaboration with UK’s Shell PLC to enter the fuel retail market in Sri Lanka. The three companies will be allocated 150 dealer-operated fuel stations each which are currently operated by CPC. On 22 May, China’s Sinopec signed agreements with the Government becoming the first, off the block in the new fuel players’ league, followed by US-based RM Parks Inc. in collaboration with Shell on 8 June. Noting that the handover of 150 fuel stations to Sinopec has been successfully completed, the Minister confirmed that the company has agreed to continue the rebranding efforts, which include installing new dispensers.

“According to Sinopec, the rebranding process for each fuel station is estimated to take around 10 to 15 days. Despite the rebranding process, the company has ensured to operate fuel stations under CEYPETCO to assure minimal disruption to the business of the fuel stations whilst promising a smooth transition to the new branding,” he added. 

Minister Wijesekera also said that the Government intends to enter into an agreement with Australia’s United Petroleum within the next couple of weeks, to further open up the petroleum market for increased competition and choice within the industry, benefitting both businesses and consumers.

Addressing concerns about foreign investments in the energy sector, Minister Wijesekera firmly rejected claims that these initiatives are detrimental to Sri Lanka. He emphasised that such investments are vital for the growth and development of the energy sector to liberalise the petroleum market in Sri Lanka. 

The Minister reassured the public that these investments do not exploit the country’s resources but rather foster mutually beneficial partnerships between Sri Lanka and international companies. “These efforts signify the Government’s commitment to fostering a competitive and vibrant energy market that benefits both investors and the public,” he noted.