Sapugaskanda refinery to be closed again

By Ifham Nizam

Four turbines of the Sapugaskanda 72 MW power station A ceased to function due to a shortage of fuel yesterday. However, temporary measures were taken to run the power station B instead.

A senior management official of the Power Ministry said that Barge Mounted Power Plant at the Colombo Port too had failed to function due to a fuel shortage.

Plans are underway to go for emergency power purchases during the next six months, senior management of the Ceylon Electricity Board (CEB) said.

The Island learns that Power Minister Gamini Lokuge and Ministry Secretary Wasantha Perera had lengthy discussions on the issue, but CEB Chairman M.M.C. Ferdinando was not present.

CEB General Manager M.R. Ranatunga, contacted for comment, told The Island that coal stocks would be sufficient till September.

Fuel stocks are available only up till 10 January.

Ranatungha said the good news was that the demand had not increased unlike in the previous year, and the furnace fuel stock was sufficient until 24 January.

He said that if the CEB could not provide funds to make payments to the Ceylon Petroleum Corporation, it would face a serious issue where thermal power generation was concerned.

Over the past few weeks, the CEB had also battled with several breakdowns.

A senior official stressed that it would take around 45 days for oil tankers to arrive here. “Emergency power suppliers can generate electricity for a day or two with the available feul stocks, but beyond that the situation will become precarious” he added.

The CPC has increased the fuel prices –Heavy fuel from Rs. 70 to Rs. 110 and Nepatha from Rs. 74 to Rs. 84.

Energy Minister Udaya Gammanpila yesterday said that the Sapugaskanda Oil Refinery would be temporarily closed from 03 January, 2022, due to the shortage of foreign exchange to purchase crude oil.

Although the refinery is expected to resume its operations before 30 January, 2022, but 22222222222some claimed that it would take more time.

The Singapore-based energy and commodities company which was awarded the long-term contract to provide crude oil here is slated to commence supplying petroleum from 26 January, the Energy Ministry said.

During the procurement process, the relevant company should be informed 90 days in advance to purchase Murban Crude Oil used at Sapugaskanda refinery, the ministry explained.

It added that the shortage of foreign exchange had hampered the plan to buy alternative crude oil for emergency use.

Therefore, purchasing crude oil on credit had become difficult as Sri Lanka’s credit ratings were falling, a ministry official pointed out.

He, however, said there would not be a fuel shortage due to the refinery’s temporary closure, as it met only 14% of petrol and 29% of diesel requirements of the country.

The announcement came a month after Sri Lanka temporarily halted the operations at the Sapugaskanda Oil Refinery on 15 November in a bid to save foreign exchange.

However, the CPC has made it clear to the CEB that it cannot provide fuel on credit any further.

Ceylon Petroleum Corporation Chairman Sumith Wijesinghe said that the CEB was expected to pay Rs. 91 Billion to the CPC within two years.