H’tota tank farm tests to be fuelled from Singapore or Dubai

Sri Lanka is importing a consignment of oil from either Dubai or Singapore for pre-commissioning tests costing US$10 million next month for its tank farm project at its new Hambantota port.

The total cost of the tank farm project is US$96 million of which $76 million is for construction.

McLarens Shipping Chairman Rohan De Silva told the Business Times that they would make the shipment within the next 60 days.

The group’s company Inter Ocean would be carrying out work on the shipment having been selected through a tender.

Mr. De Silva noted that though this was a one-off shipment for the pre-commissioning work alone they expect in the future to work with the Sri Lanka Ports Authority on a long term basis for the supply of fuel following a floating tender that would be initiated by the authorities in the future.

Construction work was completed at the tank farm compris- ing 14 tanks for the storage of aviation, bunkering and LPG fuel, the port’s chief engineer Agil Hewageegana said.

Asked whether bunkering would be carried out by any private organisations, he said as part of a policy decision, the SLPA would handle this work.

He explained that the pre-commissioning work would commence next month and planned for completion within a week.

Pre-commissioning work would involve using the imported aviation and gas oil to be filled into the tanks, which then would be tested, he said.

The tests would ensure that the tanks and the valves used to transport these fuels were fully operational, Mr. Hewageegana said.

Mr. Hewageegana said approximately $70 million has been spent on the project adding that 15 per cent was financed by the SLPA and the rest from loans from the China Exim Bank.