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New fuel storage tank to hold buffer stock for 30 days

A fuel storage tank with a capacity of 15,000m3 and internal floating roof will be constructed at the Kolonnawa fuel storage tank to be able to hold a buffer stock for 30 days in the event of any emergency.

Petroleum Resources Development Minister Arjuna Ranatunga received Cabinet approval for the above proposal.

The Ceylon Petroleum Storage Terminals (CPSTL) which maintains 11 bulk depots and supplies to both the Ceylon Petroleum Corporation and Lanka Indian Oil Company will be in charge of the project.

They have estimated it to cost Rs 450 million. The Ministry noted that the annual fuel demand in the country had risen from four to five percent and thus it was necessary to upgrade the two main fuel storage tanks of Kolonnawa and Muthurajawela to store fuel for at least 30 days, in the event of an emergency. To have a smooth distribution of fuel around the country, it was also estimated that an additional storage capacity of 100,000 MT would be needed.

The Cabinet appointed Procurement Committee and Technical Evaluation Committee have called for tenders for the project on January 17, 2017 and have thereafter awarded the project to Indi East Engineering and Construction (Lanka) Pte Ltd.