AG warns of likely fuel crisis

24 June 2014 03:24 am - 6     - {{hitsCtrl.values.hits}}


The Auditor General has warned of a possible fuel crisis in the country because of the dilapidated condition of the network of pipelines which are being used by the Ceylon Petroleum Storage Terminals Ltd (CPSTL) to carry refined petroleum products, Daily Mirror learns.
The Committee on Public Enterprises (COPE) took up the Auditor General’s report for discussion at its June 20 meeting held in the parliamentary complex.  
Refined petroleum products are currently stored in tanks installed at Kolonnawa and Muthurajawela terminals. Imported fuel is discharged from ships, docked in the Colombo Port and carried through the network of pipelines to these terminals.

The Auditor General observed that these pipelines, installed some 40 to 70 years ago had deteriorated.  The normal lifespan of such pipelines is only 25 years. Meanwhile two pipelines had been abandoned because they were beyond repairs.  Against such a background the petroleum authorities were bound to face serious difficulties in meeting the increased demand for fuel products in the country with only three pipelines in operations.

“More than two-thirds of imported refined petroleum products are carried through these deteriorated pipelines and the risk of the whole country being paralyzed with a severe fuel crisis cannot be disregarded in the audit,” the Auditor General said in his report.  

It said the Muthurajawela terminal is fed through a mid-sea Single Point Buoy Mooring (SPBM) located 7.2 kilomtres off the shore. The unavailability of an alternative arrangement to be used in case of an emergency such as rough seas has been highlighted as a matter of concern by the Auditor General.

There is no facility for inter-terminal transfer of fuel from Kolonnawa and Muthurajawela. Twenty seven instances of oil leakages were reported from April to November in 2012.  

Meanwhile, operational and financial inefficiencies of CPSTL have cost the country dearly as observed by the Auditor General.

In 2011, CPSTL paid US$550,996 as demurrage to suppliers because of delays in unloading fuel from ships while it paid US$800,714 million in 2012 and US$470,439 in 2013. (KB)

  Comments - 6

  • Paipa Bass Tuesday, 24 June 2014 09:45 AM

    This is what happens when the top has Yantham Bass attitude. Patch work and go on until whole system collapses. These pipelines should have been maintained on a priority basis as this is the life line for economy and day to day activities. via DM iPad app

    Realist Tuesday, 24 June 2014 04:20 AM

    We pay more than necessary for fuel, this should not effect the people of Sri lanka any more!

    $$$$$$$$ Tuesday, 24 June 2014 11:04 AM

    time to make some money.......... via DM Android App

    Don Don Tuesday, 24 June 2014 05:41 AM

    We will forget it by Kandy night races and another possible Aluthgama violence.

    ColomboSam Tuesday, 24 June 2014 05:59 AM

    And of course, increase the price of all fuel to support the "new development" and the attached "Komis Kuttiya"

    Road Runner Tuesday, 24 June 2014 04:33 PM

    Dont worry we will travel by bullock cart. This is the wonder of Asia. via DM iPad app

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