IOC announces plan to build oil refinery in Sri Lanka
State-owned Indian Oil Corp. (IOC) plans to build its first refinery outside India, with an investment of up to Rs 20,000 crores (US$3.615 billion), in Sri Lanka. The capacity of its Sri Lankan refinery is expected to be between 5 to 9 million metric tons per annum (mtpa).
Sri Lanka’s only refinery, which is located in Sapugaskanda, has a refining capacity of 2 million mtpa. The country’s current fuel consumption is 4.5 million mtpa; this is expected to rise to 6.5 million mtpa by 2020 and 8.5 million mtpa by 2030.
IOC is already present in Sri Lanka through its subsidiary Lanka IOC. Lanka IOC is the only private oil company that operates retail outlets in Sri Lanka, with 157 existing outlets.
Meanwhile, Sri Lanka’s Petroleum Industries Ministry also announced that it will upgrade Ceylon Petroleum Corp.’s (CPC) Sapugaskanda refinery.