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CPC to announce tenders worth US $ 150mn by next week: officials

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27 October 2017 09:55 am - 0     - {{hitsCtrl.values.hits}}

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The Ceylon Petroleum Corporation will be awarding tenders on several expansion projects totalling nearly US$ 150 million by next week, according to a top official.


“Most of these tenders will be awarded by the 31st of this month,” CPC Chairman Dammika Ranatunga said.


According to CPC documents, the largest investment is a US$ 52 million fuel hydrant system at the Bandaranaike International Airport, which will allow aircraft to be refuelled through a pipeline system installed under the tarmac, allowing aircraft to be topped off with fuel in a short period of time. The system will be installed in the bays of the current terminal, as well as for bays in the airport expansion plan.


CPC Marketing Deputy General Manager Krishantha Wickramasinghe said that this would uplift the airport’s international ratings on refuelling from ‘Good’ to ‘Excellent’ and help establish it as a refuelling hub, since many aircraft which require turnaround period of less than one hour could be accommodated comfortably.


Due to the growth of tourism in the country, and the anticipated increase in aircraft refuelling for a hub operation, CPC is estimating the current daily demand of 7.8 million litres of aviation fuel to increase by 5 percent year-on-year. To accommodate this projected increase, an aviation fuel pipeline will be constructed connecting the Muthurajawela terminal to the airport, through a tender worth US$ 46 million.

Wickramasinghe said that to reduce the impact on the environment, the pipeline will be constructed parallel to the Katunayake Expressway. He noted that the pipeline will also reduce the cost, time and environmental impact currently associated with transporting aviation fuel through train and road.
Included in this project is a storage tank for aviation fuel at Muthurajawela. 


Wickramasinghe said that when aviation fuel is transported through the Colombo Port, US$ 2.54 per tonne is added to the cost, and this could be cut down to just US$ 0.22 by importing through the Muthurajawela Terminal. 


A third project named the Cross-Country Pipeline  worth US$ 50 million  will see two new pipelines being installed between Kolonnawa and the Colombo Port to ensure energy security in the country in the future,  since the current pipeline is 76 years old and a malfunction may cripple operations. 
An alternative pipeline is currently being installed and is 80 percent complete, according to the CPC.
Wickramasinghe said that most of these projects could be funded through the CPC’s own balance sheet, through overdrafts. 


CPC has US$ 2 billion in debt on its balance sheet and the government does not want CPC to take commercial loans, according to Ranatunga.  


But the state-owned enterprise has been making profits over the past 4 months, according to official data, which could be of help in funding these projects. (CW)

 


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