Trincomalee Oil Tank Farm: International Bids to Be Called for 29 Tanks

In an effort to commercialise the Trincomalee Oil Tank Farm, Trinco Petroleum Terminal Ltd (TPTL) is preparing to launch an international bidding process to develop 29 tanks out of the 61 tanks under its control.

A joint venture company, Trinco Petroleum Terminal Ltd (TPTL), was established in 2021, with the Ceylon Petroleum Corporation holding a 51 per cent stake and Lanka IOC, a subsidiary of Indian Oil Corporation, holding 49 per cent. The agreement involves the joint development of 61 tanks out of the total 99 tanks. During Indian Prime Minister Modi’s visit to Sri Lanka last year, a tripartite agreement was signed between India, Sri Lanka and the United Arab Emirates (UAE) to develop a multipurpose pipeline linking the two countries to enable two-way energy supplies.

Following the West Asian or Middle East crisis, Sri Lanka and India have acknowledged the importance of accelerating the implementation of the Trincomalee petroleum hub project to strengthen energy security. However, no specific timeline has been set for the project so far.

An informed source stated that the company is expected to issue a Request for Proposals (RFP) within a month for the development of these tanks. The Cabinet Appointed Negotiation Committee (CANC) has given approval to invite bids from investors for the project. After the company completes the evaluation process, the proposal will be submitted back to the CANC for the final decision.

Trincomalee has been recognised as a key centre of cooperation between India and Sri Lanka in the area of energy security. The 1987 Indo–Sri Lanka Accord was the first formal agreement that referred to Indian involvement in the development of the Trincomalee oil tank farm.

Subsequently, during the 2002–2004 period, India and Sri Lanka entered into agreements that enabled IOC’s participation in fuel sales and distribution activities in Sri Lanka.

In recent discussions, Sri Lanka has also highlighted the importance of developing these tanks to ensure their full utilisation.