Sinopec to launch $3.7 billion refinery project in Sri Lanka

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Sinopec to Launch $3.7 Billion Refinery Project in Sri Lanka 2025-09-17 14:20:41 The Sri Lankan Energy Minister announced on September 16 that China’s state-owned energy giant Sinopec is expected to start building a refinery with an investment of $3.7 billion this year. At the same time, Sri Lanka is also considering the company’s long-term request to increase its share in local fuel sales. In an interview, the country’s Energy Minister Kumara Jayakody said that the Sinopec refinery approved in 2023 will have the capacity to process 200,000 barrels of crude oil per day. The factory will be built near Hambantota Port in southern Sri Lanka, a port that was also constructed by China. Anil Jayantha, Deputy Minister of Economic Development in Sri Lanka, told another journalist that Sinopec would need three years to complete the project. Sri Lankan officials said that the government had previously hoped Sinopec would sell only 20% of the output from its refineries domestically, with the rest being exported. But now a proposal is being considered to allow the company to sell up to 40% of its production locally. Sinopec has been proposing this for months; the specific proportions are currently under negotiation. Most of Sri Lanka’s fuel relies on imports. Jayakody said that Sri Lanka plans to invest $3 billion to increase the capacity of its existing refineries from 38,000 barrels per day to 150,000 barrels per day. Sinopec, as well as companies from China, India, and Qatar, have expressed interest in this project. He said that the expansion of this Ceylon Petroleum refinery will begin next year and be completed within two to three years. Sinopec attended a bid presentation session in Sri Lanka earlier this month regarding the expansion of that refinery. The company needs to submit a letter of intent by September 26. Sri Lanka is a key point of competition for China, India, and others. They have invested heavily in energy and infrastructure projects in Sri Lanka in order to enhance their influence over this Indian Ocean island nation with a population of 22 million. India announced earlier this year that it is working to establish an energy center on the east coast of Sri Lanka.