Sri Lanka discussing giving extra land, water for Chinese oil refinery

Sri Lanka
By Editor_1

COLOMBO – Sri Lanka is in discussions with China’s Sinopec to give extra land and assure water supplies after the company decided to expand the capacity of a planned oil refinery in Hambantota, Energy Minister Kanchana Wijesekera said.

“There are concerns on how the water supply is going to be provided for the refinery,” Minister Wijesekera told reporters Friday (19).

The refinery will need more land and also revise conditions in a Board of Investment agreement, he said.

Recommendations and decisions from Sri Lanka’s side had already been sent and Sinopec is expected to revert in May.

“We are hoping to sign the agreement once everyone has agreed,” Wijesekara said.

The principal agreements are expected to be signed by June, he added.

The refinery could sell up to 10% of its output in the domestic market.

“There is no commitment by the government to purchase anything,” Minister Wijesekera said.

-economynext.com

 

Editor_1
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