Chinese government provides $3.6 million grant for Muthurajawela Oil Tank Farm Project (Linked to Project ID#33184)

In 2000, the Chinese government provided an additional $3.6 million grant for the Muthurajawela Oil Tank Farm Project. China Eximbank covered 90% of the cost of the $79,528,000 EPC contract value (captured in Project ID#33184). The remaining 10% was funded by Ceylon Petroleum Corporation (CPC). This project involved an onshore component and an offshore component. The onshore component of the project involved 29 diesel and kerosene storage tanks and all the matching facilities. The offshore component of the project involved a one-point mooring system and a 5.6 km submarine oil transmission pipeline. China Huanqiu Contracting & Engineering Corporation — a construction subsidiary of China National Petroleum Corporation specializing in the construction of refineries and chemical fertilizer plants connected to refineries, and mining plants — was the EPC contractor responsible for project implementation. Project implementation began in July 2001 and the Muthurajawela tank farm became operational on May 27, 2004. With the construction of this tank farm, Sri Lanka’s storage capacity for finished petroleum products increased by 250,000 tonnes. Muthurajawela tank farm consists of 21 tanks of 10,000 m3 capacity and 8 tanks of 5,000 m3 capacity. These tanks store and distribute diesel and kerosene. Along with the tanks, CPC installed a new SPBM system, where 60,000 DWT (deadweight tonnage) ships could use the buoy for discharging imported finished products direct from sea to tanks via a submarine pipeline. This terminal includes a loading facility to distribute products by road tankers. However, rail transportation of petroleum products stored in the Muthurajawela tank farm is constrained due to the absence of a railway line. At the time of project completion, a dual pipeline transport systems named the ‘cross country pipeline’ with a length of 6.5 km was expected to link Muthurajawela tank farm with the Supugaskanda facility.

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