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A US$ 800 mn refinery at Sapugaskanda has got the Cabinet nod, in a joint venture with US based Global Energy and Industrial Operations Inc.
Cabinet approval was given for the project this week and the signing of the agreement will follow shortly, Cabinet spokesperson Nimal Siripala de Silva said on Thursday.
The project will up the existing 50,000 MT capacity to 150,000 barrels per day, also turning out higher value products like diesel oil and less of low value products like furnace oil.
The refinery currently turns out a mix of diesel, kerosene, petrol, furnace oil and naphtha. A new refinery with private investment is expected to treble locally available refining capacity to 6 million tons annually.
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A Build, Own, Operate and Transfer project, the company will manage the plant for about a 30 year period before handing it back to Ceypetco, Jaliya Medagama, Chairman of the state run oil giant told LBO recently.
Ceypetco will also allow the investor use of its infrastructure like p