BOI inks agreement with Sinopec to set up fuel stations across Sri Lanka

• US $ 100mn pumped into project
• Project will involve 150 privately owned stations currently operated by Petroleum Corporation
• 50 new fuel outlets to be established

Sinopec Energy Lanka (Pvt.) Ltd and the Board of Investment of Sri Lanka (BOI) entered into an agreement yesterday to operate and set up fuel stations for distribution in Sri Lanka. 

Sinopec has invested US $ 100 million in the project, which includes import, storage and sale of fuel. The project will involve 150 privately owned fuel outlets currently operated by Petroleum Corporation. Additionally, 50 new fuel stations will be established. The agreement allows the project to operate for 20 years, under the oversight of Sinopec Energy Lanka, in accordance with Sri Lanka Board of Investment Act No. 17.  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.  Further, it is to provide value-added services such as automatic car wash and car service facilities, department stores, convenience stores, internet cafes, automated teller machines and food courts. It is also to expand to new energy services such as photovoltaic, electric charging stations, battery swapping and other related services in the local market.

The existing agreement between Sinopec and the Petroleum Ministry signed in May will remain unchanged. 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 the second place in the world. It ranked fifth on the Fortune’s Global 500 List in 2021.

The principal businesses of the company include industrial investment and investment management, petroleum and natural gas exploration, production, storage and transportation (including pipeline transportation), sales and comprehensive utilisation, coal production, sales, storage and transportation, oil refining, storage, transportation, wholesale and retail of oil products, production, sales, storage, transportation of petrochemical products, gas-based chemicals, coal chemical products and other chemical products, production, sales, storage and transportation of new energy products, battery charging and swapping business for new energy vehicles and other related services, design, consulting, construction and installation of petroleum and petrochemical engineering projects, overhaul and maintenance of petroleum and petrochemical equipment, R&D, manufacturing and sales of electrical and mechanical equipment, production and sale of electricity, steam, water and industrial gas, research, development, application and consulting services of technology, e-commerce, information and alternative energy products, import and export, including import and export agency business of self-support products and commodities and technologies, foreign project contracting, bidding and purchasing, international storage and logistics business.