Sri Lanka’s outdated oil refinery upgrade to cost US $1.3bn

Apr 28, 2015 (LBO) – Sri Lanka’s Sapugaskande oil refinery which has an outdated oil reefing process will be upgraded at an estimated cost of 1.
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3 billion US dollars, under 2015 -2025 energy sector development plan, Power and Energy Minister said.
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“In the energy sector development plan, a refinery upgrading and modernization project, at an estimated cost of 1,300 million US dollars is to be undertaken,” Champika Ranawaka, Minister of Power and Energy said.
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The Sapugaskande oil refinery was constructed in 1969 and was producing nearly 100 per cent of the country’s requirement of refined petroleum products until about 1990. “Today it can supply only 30 per cent of the refined products for consumption because of the outdated process in the refinery, it cannot produce environmentally friendly fuels required by modern vehicle fleet,” Ranawaka said.
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“While the need to modernizing and upgrading of the refinery has been recognized for quite some time no action has been taken to implement it.
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” Ranawaka says the configuration of the refinery will be changed from current hydro-skimming type to a cracking type refinery, where low value furnace oil is upgraded into high value petrol and diesel. “The project is estimated to be completed in about four years,” “Once the project is completed refinery would be able to produce country’s total requirement of refined products.”
 The Minister was speaking at a workshop on the downstream petroleum industry: supply, quality, pricing and regulatory issues held Colombo yesterday.
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