Wednesday Nov 27, 2024
Wednesday Nov 27, 2024
Friday, 29 March 2024 00:20 - - {{hitsCtrl.values.hits}}
Power and Energy Minister Kanchana Wijesekera yesterday announced that China’s Sinopec plans to initiate work on its new refinery in Hambantota by June.
Taking to ‘X’ he noted that Sinopec Overseas Investment Holding (SOIHL) Vice President updated on the progress of the negotiations with stakeholders for the construction of the proposed refinery in Hambantota.
A group of key officials of the SOIHL called on the Power and Energy Minister on Wednesday and they have indicated that the management of Sinopec has decided to double the capacity of the refinery form the original proposal and the investment.
“They intend to sign the agreements for the project and commence work by June 2024,” the Minister noted.
On 27 November 2023, the Cabinet of Ministers approved awarding the contract to Sinopec to forge an agreement for the establishment of a petroleum refinery and associated product processing centre in Hambantota. The proposed refinery project is expected to invest a minimum of $ 4 billion to be built in the Industrial Zone at the Hambantota Port.
Wijesekera also added that discussions regarding the water supply, power supply, land allocation and BOI facilities took place yesterday with the relevant authorities.
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.
