Work Begins on $40.8M Jet Fuel Pipeline & Storage Expansion 📈

Sri Lanka has officially launched two major energy infrastructure development projects led by the Ceylon Petroleum Corporation (CPC) and Ceylon Petroleum Storage Terminals Ltd. (CPSTL) to strengthen energy infrastructure, lower transport expenses, and guarantee uninterrupted supply for the growing aviation and petroleum sectors. • Aviation Jet Fuel Pipeline Project: - Investment: US$ 40.8 Mn + Rs. 8.5 Bn (awarded to China Petroleum Pipeline Engineering Co. Ltd.) - Scope: 21-km underground pipeline (10-inch diameter) directly connecting Muthurajawela to Bandaranaike International Airport (BIA). - Storage Expansion: 5 new Jet A-1 fuel tanks adding 92,000 cu. m. capacity. - Timeline: 30 months for completion. • Muthurajawela Petroleum Storage Expansion: - Investment: US$ 3 Mn + Rs. 2.8 Bn (awarded to JV of Indo-East Eng. & Construction and Ceylex Eng.) - Scope: 3 petroleum storage tanks adding 40,000 cu. m. capacity (total 132,000 cu. m. added across both projects). - Timeline: 18 months (target completion April 2028). • CPC Financial Performance & Market Shielding: - Financials: CPC reported a profit of Rs. 28 Bn this year, following Rs. 36 Bn in 2025 (-22.2% YoY), with profits reinvested into capital projects. - Price Cushioning: Domestic fuel price hikes were cushioned despite global surges—diesel up 39.5% locally vs. 91% globally; petrol up 41% locally vs. 80% globally.