Ceylon Petroleum mulls building jet fuel pipeline

Wednesday, 7 January 2015 00:24 -     - {{hitsCtrl.values.hits}}

SINGAPORE (Reuters): The Ceylon Petroleum Corp (Ceypetco) is planning to build a jet fuel storage facility and a transfer pipeline from Muthurajawela terminal to Bandaranaike International Airport due to rising demand for the fuel, a tender document showed on Tuesday. The company has invited bids for consultancy services to do a feasibility study on the construction of the 22 kilometre-pipeline and three 10,000 ton jet fuel storage tanks at Ceylon Petroleum Storage Terminal at Muthurajawela. It is also looking to modify existing terminal facilities at Muthurajawela, including offshore discharging facilities. The company is asking for proposals and opinions on the logistics of linking the Muthurajawela storage terminal, its refinery and the Dolphin Pier at Colombo Harbour, according to the document. The tender will close on 27 February. Bandaranaike International Airport, Sri Lanka’s main airport, provides all ground services including fuel supplies to international and domestic flights. Ceypetco is the sole supplier of jet fuel in the country and is in charge of storing and supplying the fuel at the airport, the document stated. The aviation refuelling terminal at the airport, with a jet fuel storage capacity of 7.8 million litres, can now only meet three to four days of demand for aviation fuel, compared with six to seven days when it was first built in 2000, due to rising demand. Jet fuel is currently being transported to the airport through road and rail transport, which may not be sufficient to cater to the growing jet fuel demand at the airport by 2018, according to the document. “Due to limitations on increasing number of train sets, frequent railway strikes, engine breakdowns, or any other interruptions to railway tank wagon movements, Ceypetco faces great inconveniences to maintain uninterrupted fuel supply to the airport,” the company stated in the document. The construction of the pipeline will help to avoid all possible disruptions of the fuel to the airport while meeting increasing demand, it added. Currently there are no dedicated storage tanks for jet fuel at Muthurajawela terminal.