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Multi-billion rupee project in the pipeline to push up SL’s fuel buffer stock to 3 months
BY SURESH PERERA
Sri Lanka has embarked on an ambitious multi-billion rupee initiative to significantly improve the country’s Strategic Petroleum Reserve (SPR) under an ongoing long-term plan to push up the buffer stock to approximately three months from the existing 21 days.
As a crucial element of the strategy, a new oil farm will be built at Muthurajawala, while enhancing the holding capacity at the Kolonnawa storage terminal in the backdrop of continuing talks with the Indian government to reclaim 84 unused tanks in the upper section of the Trincomalee oil farm.
The operation of the 99-tank Trincomalee oil farm complex was given to Lanka Indian Oil Company (LIOC), a subsidiary of Indian state-owned IOC, under a long-term lease in 2003. However, at present, only 15 tanks in the lower section of the gigantic British built WW2 era facility are being used by the Indian company.
“The minister is in talks with the Indian government to explore the possibility of using the 84 oil storage tanks now lying idle”, says M. Uvais Mohamed, Chairman/Managing Director, Ceylon Petroleum Storage Terminals Limited (CPSTL).
“We need to prioritize our focus on enhancing the available storage capacity as the national demand for fuel climbs by 5% per annum”, he said in an interview with The Sunday Island in his office at the sprawling, six-acre Kolonnawa oil terminal.
Sri Lanka’s annual import of fuel amounts to two million metric tons of crude oil and three million metric tons of refined oil.
The Chairman said that 50 acres were sought for the proposed Muthurajawala oil storage project (adjoining the existing CPSTL facility of 29 tanks) but only 25 acres were released. If the outright purchase of the land is considered too costly, a lease arrangement will be worked out.
“The idea is to build bigger oil storage tanks at the new Muthurajawala complex because they are more efficient and easy to maintain”, he explained.
Referring to the proposed storage capacity expansion at the Kolonnawa terminal, he outlined that the construction of nine new oil tanks are on the cards at a cost of Rs. 3 billion.
International tenders were called to build four 15,000MT, four 7,000MT and one 5,000MT oil tanks at the Kolonnawa complex, and bids were awarded to an Indian company to construct six of them, while the other three will be undertaken by a Sri Lankan enterprise using 100% local labor, Mohamed continued.
“One oil tank at Kolonnawa, which is unusable as it’s around 50 to 60 years old, will be demolished, while another with its bottom deck corroded can be repaired. We can do it for Rs. 50 million rather than spend Rs. 500 million to build a new one”, he said.
The Chairman stressed that Muthurajawala was earmarked for the new oil farm as Kolonnawa is a densely populated, cosmopolitan area with inadequate land resources for such a mega project.
“What is important is to enhance energy security by improving the country’s oil reserves to meet any contingency. That’s why we are looking at a three months’ buffer stock in the long run. This is a fair target because even a big country like the US maintains three to six months in oil reserves”, he noted.
Q: When do you expect to achieve the target of enhancing storage capacity under the ‘long-term plan?’
Within the next two to four years, we will be able to increase storage capacity by 100,000MT. The refurbishment of tanks, which are either not in use or cannot be used to their full capacity, is being undertaken. As a result, in another six months, we will be able to enhance capacity by 20,000MT. We are expediting the whole process. These are concrete plans, not wishes. Energy security is of paramount importance.
Q: You referred to talks with India on using 84 tanks in the Trincomalee oil farm. Has there been any headway?
The Minister is holding discussions on the matter, and as we maintain cordial relations with India, I think we will be able to work it out. This was government-owned land that was leased out to the IOC. The Sri Lanka government will decide on it. We should work together to make it viable and beneficial to the country.
Q: The CPSTL is largely dependent on the private sector bowsers for the distribution of fuel island-wide. Don’t you agree that CPSTL should have its own fleet of vehicles for this purpose in the event of a contingency?
At present, 88% of daily distribution of fuel is done by bowsers belonging to both the CPSTL and private owners. However, CPSTL owns only 158 bowsers, while around one thousand others are hired from private owners. I agree that we need to enhance our fleet to strike a balance. Though we have a good understanding with the private bowser owners, it is imperative that we have our own in sufficient numbers in case of an emergency.
We need to reduce costs and enhance efficiency through rail transport of fuel. We have added 27 more wagons to our fleet with the support of the CGR (Ceylon Government Railway). We maintain a bulk storage facility in Anuradhapura for distribution to the North. We have now procured six acres of land at Kankesanthurai for a proposed bulk storage facility to supply fuel to the North.
As the “bloodline of the nation”, it is our responsibility to ensure fuel supplies to all key segments of the economy, whether it is shipping, aviation, transport, power generation or industries. All of them depend on our service. We have to render an efficient and effective service to the nation to realize the President’s vision to make Sri Lanka prosperous.
Bringing greater efficiency to this sector even by a small percentage translates into a saving on the country’s foreign exchange reserves. It also has an impact on the trade balance and the economy as a whole.
Q: Was CPSTL able to achieve its target in terms of profits for 2020?
We were looking at a target of Rs. 1.6 billion, but even with the Covid-19 pandemic, we are optimistic of achieving Rs. 1.6 – Rs. 2 billion.
During the height of the Covid outbreak, we distributed hand and floor sanitizers free of charge to the police, armed services, health authorities and other key segments. During the general election, the Election Department made a big saving as we supplied the requirement of hand/floor sanitizers to polling booths.
At 42 years, Uvais Mohamed is the youngest Chairman to be appointed to the CPSTL. The brother of Justice Minister Ali Sabry, he is a management accountant with work experience in the United Kingdom, India and Bangladesh.
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PCoI on Easter Sunday attacks:
By Shamindra Ferdinando
Attorney General Dappula de Livera, PC is not bound by recommendations made by the Presidential Commission of Inquiry (P CoI) into the 2019 Easter Sunday carnage, or presidential directives in that regard, according to authoritative sources.
They said that the AG couldn’t under any circumstances initiate legal proceedings until he had received the full PCoI report.
President Gotabaya Rajapaksa received the PCoI report on Feb 1. The President’s Office delivered a set of PCoI reports to Speaker Mahinda Yapa Abeywardena on Feb 23, a day after the report was presented to the cabinet of ministers. The Island raised the matter with relevant authorities in the wake of a section of the media reporting the PCoI recommending punitive measures against former President Maithripala Sirisena, Defence Secretary Hemasiri Fernando, IGP Pujitha Jayasundera, Chief of State Intelligence Senior DIG Nilantha Jayawardena, Chief of National Intelligence retired DIG Sisira Mendis and All Ceylon Makkal Congress (ACMC) leader and Samagi Jana Balavegaya MP Rishad Bathiudeen et al over the Easter Sunday carnage.
Sources pointed out that due to the inordinate delay in sharing the PCoI report with the AG, the department hadn’t been able to take preliminary measures required to initiate the proceedings. Sources said that a team of officers would take at least six weeks or more to examine the report before tangible measures could be taken.
With the AG scheduled to retire on May 24, 2021, even if the AG Department received the P CoI it would be quite a tough task to initiate proceedings ahead of retirement, sources said. However, in terms of the 20th Amendment to the Constitution enacted in last October, both the AG and the IGP could receive extensions beyond 60 at the President’s discretion.
Dappula de Livera received an Acting appointment as the AG a week after the Easter Sunday carnage whereas his predecessor Jayantha Jayasuriya, PC, was elevated to Chief Justice.
Responding to another query, sources said that the Attorney General two weeks ago requested Secretary to the President for a copy of the P CoI. However, the AG was yet to receive one, sources said. In spite of the AG not receiving a P CoI copy, the AG had instructed the IGP to obtain a copy of the report when he requested the police to complete investigations into the Easter Sunday carnage. The AG issued specific instructions after having examined police files pertaining to the investigations.
The IGP, too, hadn’t received a copy so far though some sections of the report were in the public domain.
Agriculture Minister Mahindananda Aluthgamage displayed at a live political programme on Derana a copy of the P CoI report he received at the cabinet meeting earlier in the day.
Sources said that the Attorney General’s Department couldn’t decide on a course of action in respect of the Easter carnage on the basis of a section of the report. In terms of the Commission of Inquiry Act (Section 24), the AG enjoyed significant powers/authority in respect of investigations; sources said adding that the Department urgently required both the P CoI report and police investigations report. The Attorney General’s Department has raised the delay in receiving a P CoI report amidst the Catholic Church attacking the government over the same issue.
Sources said that ministerial committee appointed to study the P CoI report couldn’t decide on how to proceed with the recommendations and the matter was entirely in the hands of the AG. Sources pointed out that the delay on the part of the government to release the report had received the attention of sections of the international media, including the New York Times. Public Security Minister retired Rear Admiral Sarath Weerasekera having met Malcolm Cardinal Ranjith at the Bishop’s House on Dec 8, 2020 said that the AG would get a copy of the P CoI report once the President received it. Minister Weerasekera said that the CID had handed over the relevant files after having completed investigations into eight blasts. Referring to the Parliamentary Select Committee (PSC) report on the Easter Sunday carnage, the former Navy Chief of Staff said that all such documents would have to be brought to one place and considered before initiating legal proceedings. Acknowledging that there could be delays, lawmaker Weerasekera said that on the instructions of the Attorney General a 12-member team of lawyers was working on the case. The minister vowed to expose the mastermind behind the Easter Sunday attacks. Investigations continued while some of those wanted were overseas, the minister said.
The minister acknowledged that the Attorney General couldn’t proceed without the P CoI report. Minister Weerasekera reiterated that once the President received the P CoI report, it would be sent to the Attorney General. The minister said that there were documents two to three feet high that needed scrutiny. The minister assured comprehensive investigation. The minister said that investigations pertaining to eight blasts had been completed and the reports handed over to the AG. However, the Attorney General had found shortcomings in those investigations.
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By Saman Indrajith
The Presidential Commission of Inquiry on the Easter Sunday bombings had failed to identify the mastermind of , the JVP said yesterday.
Addressing the media at the party headquarters in Pelawatte, JVP Propaganda Secretary MP Vijitha Herath said that the PCoI report had levelled accusations against former President Maithripala Sirisena, former IGP and head of intelligence for their dereliction of duty, shirking of responsibilities and not taking action to prevent the attacks and negligence. There were reference to the causes of the terror attacks and actions to be taken to avoid such attacks and the influence of extremist organisations. “However, there is no mention of the mastermind of the attacks, the handlers of the attackers and those whose interests the carnage served. It is also not mentioned whether there has been any foreign or local organisation behind those attacks. As per the PCoI report the attack took place as a result of culmination of extremism.
“According to the PCoI the extremist activities were a result of the prevailing political situation then. The entire nation was waiting to see who was responsible and who masterminded those attacks. The PCoI has failed to identify the true culprits responsible for the terror attacks. The report says that the leader of the suicide cadres killed himself in the attacks and it was a puzzle. That means those who are actually responsible for the attacks are still at large. The report does not provide exact details of the sources of the attacks. The PCoI had sittings for one year and five months. It summoned various persons and got their statements but it has failed to shed any light on the terror attacks. Everybody knows that the top leaders of the government and heads of security and intelligence establishments failed in their duties. Ranil Wickremesinghe was the second in command and he too is bound by the responsibility but the PCoI report fails to identify him as one of the persons against whom legal action should be instituted. The PCoI has treated Wickremesinghe and former President Maithripala Sirisena differently. We are not telling that this report is a total failure but we cannot accept this as a complete report. The PCoI handed over its report to the President on Feb 1. After 23 days it was sent to Parliament. Now, a copy of the report is there in the parliamentary library for the perusal of MPs.”
Herath said that the PCoI did not have powers to take punitive action. “It only has powers to name those responsible and recommend action to be taken against those named.
