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Upgrade of oil pipelines shelved for 12 years- CPC Unions
A project to lay 2 new pipelines, as part of upgrades to the oil pipeline system between Colombo Port and the Ceylon Petroleum Storage Terminals Ltd (CPSTL) facility in Kolonnawa, has been in limbo for 12 years.
Petroleum sector unions allege that the delay in awarding the tender to complete the project resulted in the Muthurajawela terminal having to handle far more tankers than was ideal, which contributed to the rupturing of a pipeline and the consequent oil leak last week.
Three of the 5 oil pipelines running from the Dolphin Pier at Colombo Port to the Kolonnawa storage facility have already been abandoned, as they are over 70 years old and in a dilapidated state. Currently, there’s only 1 10-inch diameter pipeline to pump Jet A-1, petrol and diesel from the Port to Kolonnawa, Petroleum Joint Trade Union Alliance (PJTUA) Convenor D.J. Rajakaruna told the Sunday Times. As such, it takes a minimum of 7 days to discharge a 40,000 metric tonnes (MT) fuel tanker at the Colombo Port. This has resulted in half the incoming tankers being diverted to Muthurajawela for discharging. According to the PJTUA, the number of tankers discharging at the Muthurajawela terminal has risen sharply during the past several years. The terminal handled 46 tankers in 2016, which nearly doubled to 88 in 2017. So far this year, 60 tankers have discharged at Muthurajawela.
“The sheer number of tankers Muthurajawela is handling means it’s very difficult to conduct even basic maintenance of the pipeline system, as it’s constantly in use,” Mr Rajakaruna pointed out. “As such, even the line that was ruptured, which had been built in 2010, was under severe strain,” he said.
“A project to lay 2 18-inch pipelines between Colombo Port and Kolonnawa was launched in 2006. The previous Government, however, chose to go for unsolicited proposals, rather than an open tender process. Seven unsolicited proposals were evaluated, but the tender was never awarded. The current Government also has chosen not to go for open tenders, but was looking to do a Government to Government agreement, which process too has stalled,” the trade unionist said.
“If the new pipelines are laid, it will take only 2 days to discharge a 40,000 MT-tanker at the Colombo Port,” Mr Rajakaruna said. He pointed out that this would greatly reduce much of the costs associated with discharging a tanker. “Why isn’t the Government going for an open tender process? Continued delay is only costing the country more.”
Secretary to the Ministry of Petroleum Resources Development, Upali Marasinghe declined to comment on the pipeline upgrade delay, saying it was a matter that should be put to the CPSTL. Ceylon Petroleum Corporation-CPSTL Chairman Dhammika Ranatunga was ‘out of reach’.