Cabinet green-lights $ 4 b Sinopec deal for new petroleum refinery in Hambantota

The Cabinet of Ministers yesterday approved awarding the contract to China Petroleum and Chemical Corporation (SINOPEC) to forge an agreement for the establishment of a petroleum refinery and associated product processing centre in Hambantota. 

Power and Energy Minister Kanchana Wijesekera announced the decision via ‘X’ yesterday.

The proposed refinery project is expected to invest a minimum of $ 4 billion to be built in the Industrial Zone at the Hambantota Port. 

Sinopec, stands as the largest oil and petrochemical products supplier and the second-largest oil and gas producer in China, bringing its expertise to the table for this venture, signalling a strategic partnership between Sri Lanka and China.

The firm holds the distinction of being the largest refining company and the third-largest chemical company worldwide. The company’s extensive network comprises a large number of gas stations, ranking it second globally. In 2021, Sinopec secured the fifth spot on Fortune’s Global 500 List.