By: Staff Writer
February 15, Colombo (LNW): The Ceylon Petroleum Storage Terminals (CPSTL) signed an agreement with US-based petroleum products distributor ‘Shell-RM Parks’ today (12 Feb.).
The relevant agreement was signed at the CPSTL Head Office, pertaining to the storage and distribution of fuel in Sri Lanka.
As per the newly signed agreement, CPSTL is now able to store and distribute ‘Shell-RM Parks’ petroleum products in Sri Lanka.
On 08 June 2023, the Government of Sri Lanka signed an agreement with RM Parks Inc., in collaboration with Shell Plc for a long-term contract for the importation, storage, distribution, and sale of petroleum products in Sri Lanka.
“US-based petroleum company RM Parks in a collaboration with Shell PLC signed the agreement to enter the Sri Lanka petroleum business. RM Parks will be the 4th supplier to enter the domestic market and will operate under the Shell branding.”
A US-based company has reached a principle agreement to lay a new fuel pipeline between Colombo Port and the Kolonnawa terminal ahead of the signing agreement to begin its retail fuel distribution in Sri Lanka.
Under the agreement, RM Parks-Shell Company will make an initial investment of US$ 50 to 60 million for the project which is expected to begin after it enters into the retail fuel distribution business.
The new pipeline will replace the existing line which has experienced several leaks over the past few years.
In addition to the laying of the pipeline, the company will install fenders in the jetty replacing tyres which are used to prevent the collision of vessels and also invest in a fire control system in the harbour.
The company is set to sign an agreement this month to enter the fuel distribution business in Sri Lanka and begin operations in June.
Power and Energy Minister Kanchana Wijesekera has held an online meeting with RM Parks-Shell Company to discuss agreements, policy, logistics and timeline to begin operations in Sri Lanka.
The company’s technical officials recently visited the Ceylon Petroleum Storage Terminal Limited (CPSTL) tank farm.
