Sri Lanka is soon going to ink the long-dragging deal with India for jointly develop the ‘Trincomalee oil tank farm’.

Highlights

• Trincomalee oil tank farm deal is a coveted project, that has remained controversial since long time.

• India and Sri Lanka have been negotiating this project for 16 months.

• For this purpose, Sri Lanka’s Energy Minister Udaya Gammanpila has instructed the Ceylon Petroleum Corporation (CPC) to form a subsidiary company called Trinco Petroleum Terminal Ltd.

• This move follows President Gotabaya Rajapaksa’s approval on setting up a special purpose vehicle.

About Trincomalee Oil Tank Farm

The Trincomalee Oil Tank Farm is located in ‘China Bay’. It comprises of 99 storage tanks, with a capacity of 12,000 kilolitres each, spread across Lower Tank farm and Upper Tank Farm. Currently, Lanka IOC runs 15 tanks. The new agreement is being negotiated for the remaining tanks.  Indian Oil Corporation will work with the Ceylon Petroleum Corporation for developing the Upper Tank Farm.