Colombo, January 23 (Daily Mirror) – Hot on the heels of signing an agreement with China’s Sinopec for an oil refinery in Hambantota, the government is planning to establish a similar facility in Trincomalee with the help of India if willing, a Minister said yesterday.

During the visit of President Anura Kumara Dissanayake to China recently, the agreement was signed for an investment of US $ 3.7 billion with Sinopec which is a leading petroleum and petrochemical company in the world.

Delivering remarks to the press, Foreign Affairs Minister Vijitha Herath said yesterday that it would be an oil refinery project primarily meant for the export market, and a landmass of 500 acres adjacent to the Hambantota port would be earmarked for it.

Referring to the proposed multi- product petroleum pipeline between Sri Lanka and India, the Minister said the two sides had agreed to discuss such a project. However, he said the government is planning for an oil refinery in Trincomalee in eastern Sri Lanka, and will do it with India if it is ready for such cooperation. The United Arab Emirates (UAE) is also expected to play a role in this project, according to the joint statement.

Already, in the joint statement signed between India and Sri Lanka after the President’s last month visit to New Delhi, the development of Trincomalee Tank Farms as a regional energy and industrial hub has been envisaged.

The government has already decided to develop the Trincomalee oil tank farm through Trinco Petroleum Terminal Ltd which is a joint venture between Lanka Indian Oil Company and Ceylon Petroleum Corporation (CPC).

Out of 99 tanks in Trincomalee, 14 are run by LIOC. According to the agreement signed during the time of Mr. Udaya Gammanpila as the Subject Minister of the Gotabaya Rajapaksa government, the CPC is required to develop 35 tanks and the remaining 50 tanks jointly by the CPC and LIOC through this venture.

Energy Minister Kumara Jayakodi recently promised to press ahead with this project.