Indian Oil Corporation Ltd and Sri Lanka’s Ceylon Petroleum Corporation (CPC) have entered into an agreement to build a second refinery at the eastern port city of Trincomalee.
The new refinery will hold a capacity of at least 1, 00,000 barrel per day. However, the total cost of this project is yet to be determined.
Sri Lanka will also modernise its existing refinery to improve its variety of crudes. The contract will be awarded through competitive bidding.
In addition, the Indian government has also agreed to convert a 500 MW coal power plant to natural gas in Sampur, Trincomalee. The coal project has already been awarded to Indian state-run utility firm NTPC.