Indian Oil Corp to supply 12-13 fuel cargoes to Sri Lanka
OIL & GAS

Indian Oil Corp to supply 12-13 fuel cargoes to Sri Lanka

The country's top refiner and fuel retailer, Indian Oil Corporation Limited (IOCL) told the media that it will supply 12-13 fuel cargoes to Sri Lanka to aid the island nation's energy crisis.

Over the next 4-5 months, IOC plans to supply gasoil, gasoline, and jet fuel to Sri Lanka. The supplies will be made possible by a $500 million line of credit (LOC) extended to Sri Lanka by the Indian government for the purchase of fuels.

Sri Lanka signed a lease agreement with Lanka IOC, a local unit of Indian Oil Corp, to lease 75 oil tanks on Thursday, moving the island closer to securing a $500 million fuel credit line from India.

The agreement was signed ahead of Chinese Foreign Minister Wang Yi's visit to Colombo this weekend, as China vies for influence in Sri Lanka.

Sri Lanka is experiencing one of its worst financial crises in decades, with foreign exchange reserves dwindling and debt repayments totalling nearly $4.5 billion due in 2022, prompting it to look for new ways to bring in foreign exchange.

Sri Lanka had previously agreed to lease all 99 of its tank oil farms to India in 2003. According to the new agreement, Lanka IOC will lease 14 tanks for 50 years, while Trinco Petroleum Terminal Pvt Ltd, a joint venture (JV) with the state-run Ceylon Petroleum Corporation (CPC), will develop 61 oil farms. The remaining 24 tanks will be used by CPC.

Since 1987, successive Indian and Sri Lankan governments have tried to split ownership and development of a World War II-era tank farm at Trincomalee, a strategically important harbour of the island's scenic east coast.

Sri Lanka is on a shipping route connecting Gulf oil exporters with Asian consumers, and Trincomalee was a vital Allied supply hub during World War Two.

Image Source

Also read: Indian Oil Corp bags city gas licenses for nine potential GAs

The country's top refiner and fuel retailer, Indian Oil Corporation Limited (IOCL) told the media that it will supply 12-13 fuel cargoes to Sri Lanka to aid the island nation's energy crisis. Over the next 4-5 months, IOC plans to supply gasoil, gasoline, and jet fuel to Sri Lanka. The supplies will be made possible by a $500 million line of credit (LOC) extended to Sri Lanka by the Indian government for the purchase of fuels. Sri Lanka signed a lease agreement with Lanka IOC, a local unit of Indian Oil Corp, to lease 75 oil tanks on Thursday, moving the island closer to securing a $500 million fuel credit line from India. The agreement was signed ahead of Chinese Foreign Minister Wang Yi's visit to Colombo this weekend, as China vies for influence in Sri Lanka. Sri Lanka is experiencing one of its worst financial crises in decades, with foreign exchange reserves dwindling and debt repayments totalling nearly $4.5 billion due in 2022, prompting it to look for new ways to bring in foreign exchange. Sri Lanka had previously agreed to lease all 99 of its tank oil farms to India in 2003. According to the new agreement, Lanka IOC will lease 14 tanks for 50 years, while Trinco Petroleum Terminal Pvt Ltd, a joint venture (JV) with the state-run Ceylon Petroleum Corporation (CPC), will develop 61 oil farms. The remaining 24 tanks will be used by CPC. Since 1987, successive Indian and Sri Lankan governments have tried to split ownership and development of a World War II-era tank farm at Trincomalee, a strategically important harbour of the island's scenic east coast. Sri Lanka is on a shipping route connecting Gulf oil exporters with Asian consumers, and Trincomalee was a vital Allied supply hub during World War Two. Image Source Also read: Indian Oil Corp bags city gas licenses for nine potential GAs

Next Story
Resources

Rustomjee Builds Model Labour Housing in Thane

In a pioneering move that redefines worker welfare in Indian real estate, Rustomjee Group has unveiled a state-of-the-art 35,000 sq. ft. labour housing facility at the construction site of Rustomjee Urbania in Thane. The project sets a new industry benchmark by integrating comfort, safety, sustainability, and dignity into housing for 500 construction workers. Spread across 84 well-ventilated rooms, each 10x10 feet and accommodating up to six individuals, the facility offers far more than basic shelter. It represents a deeper cultural shift in how the construction workforce is valued—creatin..

Next Story
Real Estate

Young and Old Fuel India’s Housing Boom

India’s housing market is witnessing a surprising surge in interest from two distinct age groups—young professionals and senior citizens. A recent consumer sentiment survey of 1,950 prospective homebuyers reveals that both 18–24-year-olds and those aged 75 and above are showing strong intent to invest in real estate, highlighting a shift in how different generations are approaching property ownership. Young professionals, driven by rising incomes and a long-term view on wealth creation, recorded a Housing Sentiment Index (HSI) score of 164. Respondents from this group indicated they are..

Next Story
Resources

AD Ports’ LNG-Powered Ro-Ro Vessel Sets Sail from Khalifa Port

United Global Ro-Ro, a joint venture between Noatum Maritime (a part of AD Ports Group’s Maritime & Shipping Cluster) and Erkport, has marked a major milestone with the maiden voyage of its first LNG-powered Pure Car and Truck Carrier (PCTC), UGR Al Samha, at Khalifa Port. This event signifies a new chapter in sustainable maritime logistics, as the deep-sea vessel will serve as a green link across trade routes spanning the Middle East, Asia, and the Mediterranean. With a cargo capacity of over 7,000 car equivalent units (CEU) across 12 decks, UGR Al Samha has been designed to optimise the ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?