LIOC to invest US $ 4 m this year
Sanjeevi JAYASURIYA
Sri Lanka needs to invest more in the petroleum sector development
focusing on expansion of infrastructure facilities. Lanka Indian Oil
Company will continue its investment drive and looking at investing US $
4 million during the year, Lanka IOC Managing Director K.R. Suresh Kumar
told Daily News Business.
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Suresh
Kumar |
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Trincomalee
oil farm |
“The country’s petroleum industry needs capacity building and further
investments to sustain the growth momentum,” he said.
Lanka IOC continues to invest in the country’s petroleum sector and
there will be more investments at the Trincomalee terminal this year.
We are keen on entering the bunkering business at the Hambantota Port
once it is ready for business by November.
“We are awaiting a positive response from the Government and have the
capability to commence business immediately once the green light is
given,” he said.
“The company is in the process of evaluating the Trincomalee facility
to upgrade its current status. A detailed engineering evaluation is
being done at present and once the report is ready we will quantify the
investment necessary,” Kumar said.
The Trincomalee oil tank farm has 99 tanks each with a capacity of
12,259 kilolitres. The company imports petroleum products to the two
ports of Colombo and Trincomalee where it also uses its storage
facilities.
Lanka IOC will open four more filling stations next month adding to
its current network and with these units it will have 156 filling
stations islandwide.
The company emphasises its keen interest in becoming a dominant
player in the country’s bunkering business and plans to expand its
presence in the sector. “The company’s businesses are progressing well
at present. However, we are concerned of the volatility in oil prices.
The diesel price in the domestic market is not attractive as import
cost is higher than the market price. Therefore compensation is low,” he
said.
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