Lanka IOC invests $11 m in China Bay tank farm during past decade

Since taking over operations of the China Bay tank farm ten years ago in 2002, Lanka IOC has made significant investments in developing the tank farm, while ambitious plans are also underway to make Trincomalee an important industrial site.

Lanka IOC PLC’s Managing Director, K.R  Suresh Kumar said, “Over the past 10 years, since 2002, we have made a total investment of nearly USD 11.2  million in the China Bay tank farm. This covers a gamut of areas such as improving facilities for fuel handling and operations, modernising old storage tanks and building new ones, strengthening the jetty etc.”

Outlining the improvements Suresh Kumar said, “Lanka IOC invested about USD 5.62 million since

2002 to improve fuel handling and such operations. Two new storage tanks of 5500 kilolitres each were constructed along with a new Pump House and Bowser Loading Gantry at the lower tank farm area. Fire fighting facilities with modern hydrants, monitors, sprinklers and foam system were also installed to fight any fire hazards. Since existing pipelines were old and not usable, five new pipelines were also laid from the jetty to the storage tanks.”

Lanka IOC has constructed a state-of-the-art lube blending plant of 18000 MTPA capacity, at a cost of USD 5.0 million to manufacture the high quality Servo Lubricants in Sri Lanka. Among the facilities are eight base oil tanks, filling machines for drums and small packs, base oil pipeline from the jetty, pump house and a modern laboratory to check the quality of lubricants and petroleum fuels.

 “Since the jetty structure was old and corroded, Lanka IOC strengthened the jetty at a cost of USD

0.35 million. In addition to this were attendant civil works such as roads, boundary walls and living quarters. During the past decade Lanka IOC also modernised the two existing storage tanks a cost of USD 0.24 million by providing a special floating roof structure so that they can store volatile petroleum products with less evaporation,” Kumar added.

Plans are also underway to utilise the storage tanks in the upper tank farm area. Lanka IOC has already conducted a survey of the storage tanks by engineering consultants while detailed estimates have also been done based on which further investments are planned.

The China Bay tank farm, of World War II vintage, is of historic and strategic significance in this part of the world. It is the largest tank farm located between the Middle East and Singapore.

This tank farm connects to the Trincomalee harbour, which is the world’s fifth largest all-weather, non-tidal natural harbour with a 56 km shoreline, thus making this tank farm most effective for fuel reception, storage and supply.

Formerly operated by CPC, the tank farm has a total of 99 tanks, each with a capacity of 12,000 kilolitres.