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LIOC won’t release tanks, CPC spends Rs. 1b to build four tanks
The Ceylon Petroleum Corporation (CPC) is to set up four fuel storage tanks at a cost of more than Rs. 1 billion.
These tanks to be set up in Muthurajawela off Wattala are needed in view of a delay in securing the release of three tanks leased out to the Lanka Indian Oil Corporation (LIOC) in Trincomalee, a senior CPC official said.
He said the tender to set up the first of the four tanks had been closed and the estimated cost was around Rs 400 million.
The official said the CPC hoped to have storage facilities for 15,000 metric tonnes in each of the tanks and would also have facilities to store additional stocks required by the CPC.
The moves come in wake of an additional demand by the Ceylon Electricity Board (CEB) for fuel required for thermal power production.
The CEB has sought 60,000 metric tonnes of additional diesel supplies this month in contrast to the normal requirement of 10,000 metric tonnes while the furnace oil demand of 23,000 metric tonnes has risen to 55,000.
Earlier the CPC made several attempts to secure the release of three oil tanks leased out to the LIOC, but due to objections from the company, the plan has been put on hold. The matter is due to be taken up with the new Indian High Commissioner who assumes duties next week.
Meanwhile, CPC employees this week staged a protest against the LIOC over the issue and they have threatened to stage another strike if the tanks are not released.