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Plans to make Sapugaskanda Refinery fully operational

10 Mar 2022

 
  • Lokuge says discussions on to finalise 120,000 MT crude oil purchases
  • Fuel shipments expected post 15 March
  • G.L. heads 3 committees to obtain aid, essentials from China, Japan, ME
  Energy Minister Gamini Lokuge said yesterday (9) that they hope to make the Sapugaskanda Oil Refinery operational at full 100% capacity once again and are currently in the process of acquiring the necessary crude oil that is required for it. “We have discussed with a number of companies to obtain crude oil. We are almost done with the discussions for one shipment of 40,000 metric tonnes (MT) of crude oil. The conditions to open the letter of credit (LC) will be finalised soon. We are also in discussions about two more shipments of crude oil of 40,000 MT each,” Lokuge said at a media briefing held yesterday. The Sapugaskanda Oil Refinery –  the country’s sole oil refinery – was shut down twice in December 2021, due to the inability to import crude oil as a result of the prevailing foreign exchange crisis. Although it restarted its operations at the beginning of this year, the refinery has been functioning at a lower capacity. Lokuge said yesterday that diesel, petrol, and aeroplane fuel shipments are expected in Sri Lanka after 15 March, through the Indian credit facility. In February 2022, the Government of Sri Lanka signed a $ 500 million line of credit agreement with the Export-Import Bank of India (EXIM Bank), to aid in addressing the fuel shortages currently faced by the country. Speaking at the same media briefing, Foreign Minister Prof. G.L. Peiris said that he is heading three cabinet subcommittees focused on China, Japan, and the Middle East (ME), respectively, to discuss foreign financial aid and to facilitate quick relief in terms of necessary imports such as food, fuel, and medicines. “The subcommittee to discuss with the Middle East includes President’s Counsel and Justice Minister M.U.M. Ali Sabry and Youth and Sports and Development Co-ordination and Monitoring Minister and Digital Technology and Enterprise Development State Minister Namal Rajapaksa. We were to have our first meeting about it yesterday,” said Prof. Peiris. Lokuge assured that the public will be relieved of lengthy fuel lines by approximately 18 March. “I saw some small lines for diesel at the fuel pumping stations I passed by yesterday. I believe that by 18 March, we will not have lines anymore. We currently have 20,000 MT of fuel in our storage and a further 32,000 MT were being unloaded at the Colombo Port yesterday,” he added. Fuel shortages due to the forex crisis have heavily impacted the public, leaving them in lengthy fuel lines for several hours per day. The crisis has affected multiple sectors – with fishermen unable to obtain diesel to power their fishing boats and farmers unable to obtain diesel to power their machinery to harvest their crops. Long-distance bus drivers remain in queues for hours to obtain fuel to make their journeys every day. Meanwhile, with rapidly declining water reserves for the generation of hydropower (as Sri Lanka is experiencing the drought season) and a severe fuel shortage impacting the powering of thermal power stations, the Ceylon Electricity Board (CEB) has been imposing nearly eight-hour-long power cuts during the past couple of weeks. Lokuge said that with more fuel being supplied to the CEB now, he hopes that power outages will be limited from next week.


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