China’s Sinopec to build refinery in Sri Lanka
The volume of investments in construction is 4.5 billion US dollars.
The Sri Lankan government has approved China’s Sinopec proposal to build an oil refinery. This was stated by the head of the Ministry of Energy of the country K. Wijesekera.
The Sinopec refinery will be located in Hambantota on the south coast of Sri Lanka. The deep-water port of Hambantota is located near the main shipping route in the Indian Ocean. In 2017, Sri Lanka leased the port to the Chinese state-owned company China Merchants for 99 years.
According to analysts, the refinery can focus on markets outside Sri Lanka, and use its partnership with the state-owned company China Merchants Port to expand the supply of bunker fuel to Hambantota. The volume of investments in construction is 4.5 billion US dollars.
For Sinopec, this deal is part of a development strategy outside of China.
The company currently owns refining assets in Saudi Arabia, as well as oil and gas processing assets in Russia.