CPC to launch RFP for Sapugaskanda refinery expansion

The Ceylon Petroleum Corporation (CPC) is preparing to launch the Request for Proposal (RFP) process for the long-planned expansion of the Sapugaskanda Refinery, with land acquisition for the project nearing completion, according to CPC Managing Director Dr. Mayura Neththikumarage.

As per media reports, quoting Dr. Neththikumarage, the refinery expansion requires additional land for the construction of a new facility.

While all required land parcels have been identified and demarcated, a small portion is still awaiting formal transfer to the CPC.

“Most of the identified lands have already been handed over, while a few are pending official transfer,” he said.

With the acquisition process in its final stages, the CPC is expected to begin the RFP process shortly.

The proposed refinery will be developed through a joint venture with a private investor, who is expected to provide the bulk of the financing, while the CPC will hold a stake in the project.

Under the plan, the new refinery will be built adjacent to the existing Sapugaskanda facility, after which both operations will be integrated into a single refining complex.

Dr. Neththikumarage noted that the current refinery processes approximately 50,000 barrels of crude oil per day. Once the expansion is completed, the combined complex is expected to double capacity to 100,000 barrels per day. The project will also include the modernisation of the existing refinery.

Construction is expected to take around four years, and upon completion, the expanded facility is projected to meet the full fuel requirements of the CPC’s current market share of around 55–57%.

According to the CPC’s 2024 Auditor General’s report, the project requires the acquisition of 196 land plots covering approximately 59 acres. The report also states that Rs. 1.68 billion had already been spent on land acquisition activities, including Rs. 171.39 million for a feasibility study carried out in 2021.