29 unused oil tanks in Trincomalee open for local, foreign investors

• RFP to be announced within a month for development of tanks
• CANC has approved the project for investor bids to develop the project
• Sri Lanka and India recognise the need to implement the Trincomalee petroleum hub project for energy securit

In a bid for the commercialisation of the Trincomalee Oil Tank Farm, Trinco Petroleum Terminal Ltd (TPTL) is planning to go for international bidding for the development of 29 tanks out of 61 tanks in its possession, an official said yesterday.   
A joint venture company, Trinco Petroleum Terminal Ltd (TPTL), was created in 2021. In it, the Ceylon Petroleum Corporation holds 51 per cent and Lanka IOC (a subsidiary of Indian Oil Corporation) holds 49 per cent. The agreement covers 61 tanks out of 99 for joint development. When Indian Prime Minister Modi visited Sri Lanka last year, a tripartite agreement was signed among India, Sri Lanka and the United Arab Emirates (UAE) to develop a multipurpose pipeline connecting the two countries for two-way energy supplies.   
In the wake of the West Asian or Middle East crisis, Sri Lanka and India have recognised the need for the expeditious implementation of the Trincomalee petroleum hub project for energy security, but no specific timeline has been carved out yet.   
An informed source said that the company would announce a Request for Proposals (RFP) within a month for the development of
these tanks.   

The Cabinet Appointed Negotiation Committee (CANC) has approved the project for inviting bids for investors to develop the project. Once the project is evaluated by the company, it will be referred back to the CANC to make the final decision.   
Trincomalee has been identified as a nodal point of cooperation between India and Sri Lanka in the field of energy security. The 1987 Indo–Sri Lanka Accord marked the first formal reference to Indian involvement in the development of the Trincomalee oil tank farm.   
Later, during the 2002–2004 period, India and Sri Lanka signed agreements allowing IOC involvement in fuel sales and distribution in Sri Lanka.   
During recent discussions, Sri Lanka has also flagged the need for the development of these tanks for full utilisation.