Sinopec to Help Build Hambantota Refinery
Sri Lankan President Ranil Wickremsinghe met Sinopec representatives in Colombo on Monday. File Image / Pixabay
Chinese energy company Sinopec is set to support the construction of a refinery at the Sri Lankan port of Hambantota.
Sri Lankan President Ranil Wickremsinghe met Sinopec representatives in Colombo on Monday, according to local news provider News 1st.
Sinopec has pledged to invest in the construction of the plant, and is ready to fully finance the project, according to the report.
After a urbulent and ultimately unsucessful attempt by the governament to run marine fuel operations at Hambantota, in 2019 Sinopec was awarded the right to control bunkering at the port.
China as a whole has a long history of investment in Hambantoa and has already invested billions of dollars in the project.
The addition of a refinery at Hambantota would be likely to help make the port's bunker prices more competitive with rival locations in the region.
VLSFO delivered at Hambantota stood at $684/mt on Friday, according to Ship & Bunker prices, compared with $667.50/mt at nearby Kochi.