China’s Sinopec fires up local operations, eyes refinery operations with largest FDI

Wednesday, 27 September 2023 00:22 - - {{hitsCtrl.values.hits}}

Enlists 150 stations, provisions for 50 more with value additions on cards
Power and Energy Minister ensures support to Sinopec to enhance distribution infrastructure
Says era of energy security with constant supply guarantee

Power and Energy Minister Kanchana Wijesekera

Sinopec Executive Director Supplies Yang Junze

By Darshana Abayasingha

Sinopec officially flagged off operations in Colombo this week with a distributor felicitation event, as the Government welcomed an “era of energy security” and unveiled plans by the Chinese energy giant to set up a refining plant in Sri Lanka.

The plans for the refinery are due to be finalised next month, and if approved this would herald the largest foreign direct investment in Sri Lanka to date, the minister added.

The world’s largest fuel refining company, Sinopec, has inked a 20-year licence to franchise 150 existing filling stations throughout Sri Lanka, plus, invest in an additional 50 filling stations.

Pix by Lasantha Kumara

Sinopec will continue to enhance its ability to serve the whole process of local procurement, storage, distribution, and sales of oil products. Speaking at the occasion, Minister Wijesekera called on Sinopec to expand distribution infrastructure in the country, including pipelines and storage for more seamless and efficient distribution.

“Sinopec was due to enter Sri Lanka over 20 years ago, when President Wickremasinghe was then the Prime Minister, but that process got delayed due to political and policy changes. We are glad to welcome them now with Wickremasinghe now as President. These will open doors to the energy market in Sri Lanka, and this is now an era of energy security. We want the market to become independent,” Energy Minister Kanchana Wijesekera said at the launch.

Renowned as the world’s largest fuel refining company, boasting an annual production capacity exceeding 250 million tons, Sinopec is poised to leverage its vast resources and global trade prowess to guarantee a consistent flow of top-tier fuel products through its channels, catering to the needs of consumers. This commitment to delivering a stable and high-quality fuel supply is not only set to invigorate Sri Lanka’s industrial sector and day-to-day life.

Speaking at the event Sinopec Executive Director Supplies Yang Junze assured Sri Lankans of a constant supply of quality fuels and added his company would continue efforts to provide sustainable all-round energy solutions to the market.

Sinopec said it has commenced the systematic transition of franchise petrol stations with updated signage and a modernised service concept. The company will embark on a site transformation project as agreed with the dealers, upgrading facilities and equipment to improve the ambience of Sri Lankan filling stations step by step, ensuring a safe and seamless operation. Sinopec will introduce incentive opportunities in due course, and encourage distributors to explore cooperation opportunities and innovate routes for introducing the Sri Lankan specialty commodities globally.

It was also announced that Sinopec will work closely with dealers to go deep into every community, introduce convenience services into the filling station and thereby explore solutions that benefit a wider range of communities.