Friday Nov 15, 2024
Friday Nov 15, 2024
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Sinopec Energy Lanka CEO Yu Yuhua (second from left) and State Minister of Investment Promotion Dilum Amunugama exchange the agreement of project to import, store, distribute and sell petroleum products in the local market of Sri Lanka, while Sinopec Energy Lanka Deputy General Manager Arthur Cheng Anxiang (extreme left) and BOI Chairman Dinesh Weerakkody look on
– Pic by Ruwan Walpola
Sinopec Energy Lanka Ltd., yesterday signed an agreement with the Board of Investment (BOI) for a $ 100 million investment in the import, storage, and sale of petroleum in Sri Lanka.
As part of this endeavour, Sinopec will have a total of 200 fuel stations countrywide, by assuming the control of 150 privately-owned fuel outlets currently operated by the Ceylon Petroleum Corporation (CPC), and by additional 50 new filling stations.
The agreement grants Sinopec Energy Lanka 20 years to operate the project, governed by the regulations outlined in the Sri Lanka Board of Investment Act No. 17.
“The collaboration between Sinopec and BOI marks a significant milestone in the development of the country’s fuel distribution infrastructure. With Sinopec’s expertise and extensive experience in the industry, this initiative is poised to contribute to the growth and modernisation of Sri Lanka’s energy sector,” Investment Promotion State Minister Dilum Amunugama told journalists yesterday.
Sinopec Energy Lanka CEO Yu Yuhua said the company is set to commence operations in Sri Lanka within 45 days following the issuance of the license.
“Our first consignment will arrive in Sri Lanka by the end of this month. The next step for the company now is to enter into agreements with our dealers. We promise to ensure a stable fuel supply and make our contribution to the economic development of Sri Lanka,” he added.
Sinopec will offer a wide range of petroleum products through its fuel stations, including 92 and 95-octane petrol, 500 PPM diesel, diesel 10 COPPM, petroleum jet fuel, and other diesel and petroleum products.
In addition to fuel sales, Sinopec aims to provide value-added services such as automatic car wash and car service facilities, department stores, convenience stores, internet cafes, automated teller machines, and food courts. Furthermore, the company plans to expand its services to encompass new energy solutions such as photovoltaic systems, electric charging stations, battery swapping facilities, and other related offerings tailored to the local market.
It also noted that the existing agreement between Sinopec and the Power and Energy Ministry signed in May, will remain unchanged, demonstrating the collaborative effort to streamline operations and maximise efficiency.
Sinopec Energy Lanka is a subsidiary of Sinopec, which stands as the largest oil and petrochemical products supplier and the second-largest oil and gas producer in China. Sinopec holds the distinction of being the largest refining company and the third-largest chemical company worldwide. The company’s extensive network comprises a vast number of gas stations, ranking it second globally. In 2021, Sinopec secured the fifth spot on Fortune’s Global 500 List.
The principal businesses of Sinopec encompass a wide range of activities, including industrial investment and management, petroleum and natural gas exploration, production, storage, and transportation, coal production and sales, oil refining, production and sales of petrochemical products, new energy solutions, engineering projects, and much more. The company also engages in import and export operations, foreign project contracting, international storage and logistics, and various research and development activities.
