Sri Lanka: Iran to build new refinery

Sri Lanka: Iran to build new refinery
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Colombo: In addition to upgrading its ageing 50,000 barrel per day (bpd) state-owned refinery, Iran has also agreed to build a new oil refinery for Sri Lanka.

Iranian officials vowed this when Sri Lanka President Maithripala Sirisena visited Tehran on May 13.

The only oil refinery Sri Lanka has in Colombo suburb Sapugaskanda was built by Iran in 1969 to refine Iranian light crude.

However, state-run Ceylon Petroleum Corporation (CPC) was forced to look for other light crudes when sanctions were imposed on Tehran in 2012 to curb its nuclear ambitions, as per Colombo Page.

The only refinery that Sri Lanka has, caters to only 30 percent of the country’s fuel requirement.

According to the Colombo Page, Iran’s offer comes as Chinese, Middle Eastern and Russian companies are in discussions to build a 100,000 bpd refinery for CPC.

Sri Lanka has also discussed a 100,000 bpd refinery in partnership with Indian Oil Corp. But no progress can be seen on that plan.

Sirisena is the first leader to go to Iran after assuming duties as President and Trump’s decision to re-impose economic sanctions on Iran. (ANI)