15 July 2023 12:00 am Views - 367
By Sheain Fernandopulle
Signifying a crucial juncture in Sri Lanka’s fuel market and a timely move to address fuel supply challenges, Sinopec Energy Lanka (Pvt) Ltd inked an agreement worth $100 million with the Board of Investment of Sri Lanka (BOI) to operate and set up fuel stations for distribution in Sri Lanka.
The agreement signing in this regard took place at the BOI headquarters on Thursday (13) in the presence of State Minister Dilum Amunugama, CEO Sinopec Yu Yuhua, BOI Chairman of the Board of Investment of Sri Lanka Dinesh Weerakkody and other stakeholders.
The agreement entails the operation and establishment of fuel stations by Sinopec for fuel distribution throughout Sri Lanka while covering various aspects such as the import, storage, and sales of fuel.
As part of the endeavour, 150 privately-owned fuel outlets that are currently operated by the Petroleum Corporation will be involved. Furthermore, the project aims to establish 50 brand-new fuel stations. The agreement allows for the project to operate for a specified duration.
Sinopec will sell various petroleum products, including 92 and 95 Octane petrol, 500 PPM diesel, diesel 10 COPPM, petroleum jet fuel, and other diesel and petroleum products.
The existing agreement between Sinopec and the Ministry of Petroleum signed in May will remain unchanged.
The China’s Sinopec is the largest oil and petrochemical products supplier and the second-largest oil and gas producer in China, the largest refining company, and the third-largest chemical company in the world. Its total number of gas stations ranks second place in the world. It ranked 5th on Fortune’s Global 500 List in 2021.