Sinopec signs agreement to enter Sri Lanka’s fuel retail market
July 14, 2023 02:49 pm
Sinopec Energy Lanka (Pvt) Limited and the Board of Investment of Sri Lanka (BOI) signed an agreement on Friday (July 14) to operate and set up filling stations for distribution in Sri Lanka.
Sinopec has invested USD 100 million in the project, which includes import, storage and sales of fuel.
The project will involve 150 privately-owned fuel outlets currently operated by the Petroleum Corporation.
Additionally, 50 new fuel stations will be established, the BOI said.
The agreement allows the project to operate for 20 years under the oversight of Sinopec Energy Lanka, in accordance with the Sri Lanka Board of Investment Act No. 17.
Sinopec will sell various petroleum products, including 92 and 95 Octane Petrol, 500 PPM Diesel, Diesel 10 COPPM, petroleum jet fuel, and other diesel and petroleum products.
Further, the agreement will facilitate the provision of value-added services such as automatic car wash and car service facilities, department stores, convenience stores, internet cafes, automated teller machines, and food courts.
It will also allow expansion to new energy services such as photovoltaic, electric charging stations, battery swapping, and other related services in the local market.
The BOI said the existing agreement between Sinopec and the Energy Ministry signed in May will remain unchanged.
The company is the largest oil and petrochemical products supplier and the second largest oil and gas producer in China, the largest refining company, and the third largest chemical company in the world. Its total number of gas stations ranks second place in the world. It ranked 5th on Fortune’s Global 500 List in 2021.
