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US company to build multibillion rupee oil pipeline here

( March 30, 2014, Colombo, Sri Lanka Guardian) A United States-based company has been selected to build a multibillion rupee project to lay a pipeline from the Colombo Port to the Kolonnawa fuel storage facility to expedite unloading of fuel from ships, a senior official said yesterday.Ceylon Petroleum Storage Terminal Ltd (SPSTL) Chairman M.R.W.de Soysa said the US company had been picked by the technical evaluation committee to carry out the US$ 50 million (Rs. 6,500 million) project. He said the proposal would be submitted to the Cabinet soon.

The chairman said the new pipeline would help to unload 45,000 metric tonnes of fuel within two days in contrast to four days now.“At present, we are not in a position to use the existing pipeline to its full capacity as there are leaks and fuel cannot be pumped at full pressure. The pipeline is about 40 years old,” Retired Maj. Gen. Soysa said.

He said that though the main contract would be carried out by the US company, the civil engineering sub contract would be handled by the Sri Lanka Army.
The project to lay the 5.8 km pipeline would begin within the next few months.

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