Tender for Muthurajawela-BIA aviation fuel pipeline to be awarded in April

By Nishel Fernando
The Energy Ministry is on track to award the contract for the construction of the aviation fuel pipeline from Muthurajawela to Bandaranaike International Airport (BIA) in April 2026. 
The project, which involves the construction of a transfer pipeline and jet fuel storage tanks, is a critical step in securing the country’s aviation fuel supply chain.
According to the latest progress reports filed by the ministry, the second round of bid invitations was successfully concluded, with the bids opening on November 14, 2025. 
The Cabinet Committee-approved procurement timeline indicates that the evaluation process is nearing completion, with the contract scheduled to be awarded in April. The construction work is expected to be completed by October 2028.
The project has been prioritised as Ceylon Petroleum Corporation (CPC) looks to reinvest its recent earnings into infrastructure modernisation. 
CPC reported a profit of Rs.18 billion in the first half of 2025, with the management previously confirming that these funds would be directed toward capital projects, including the Muthurajawela-Katunayake pipeline, to improve the logistics and operational efficiency.
In a related development, the government has shifted its strategy regarding the other pipeline infrastructure due to the 2022-2023 financial crisis. The ministry confirmed that the Cross Country Pipeline Project, originally slated for implementation between 2022 and 2023, was suspended, due to the funding constraints. Instead, the Cabinet of Ministers granted approval on November 17, 2025 for the Pipeline from Kolonnawa Oil Terminal to Colombo Harbour project. The procurement documents for this alternative project are currently being drafted to expedite its implementation.