Sapugaskanda Refinery temporarily shut down

Posted by Unknown on Thursday, June 26, 2014 | 0 comments | Leave a comment...

Sapugaskanda Oil Refinery
The Sapugaskanda Oil Refinery of the Ceylon Petroleum Corporation (CPC) was temporarily shut down because the pipeline connected to the buoy was damaged, CPC Managing Director Susantha de Silva said.

“We have halted the operations of the Sapugaskanda oil refinery for four days to repair the broken pipeline to the buoy,” he said.

He said investigations were being carried out to determine the cause of the damage and that there wouldn’t be a fuel shortage despite the breakdown. “The repairs to the pipeline may take some time,” he said.

Meanwhile, the leaders of the CPC unions said two oil tankers had been anchored for nearly thirty days as the refinery had a breakdown. “The Corporation may have to pay about 30,000 Dollars per day as late charges for anchoring,” they said.

Denying the allegation, Mr. de Silva said they had not paid any fee so far as late charges. “We will investigate it and then decide whether to pay late charges or not,” he said.

The union leaders also charged that the CPC had replaced the broken pipeline with low quality metal tubing which was only guaranteed for two years and also that the pipe line had broken again yesterday after the recent repairs.

They said the pipe line had broken down more than four times during last five years due to the use of law quality pipes. The Union suspects that the capacity of the storage tanks may be insufficient to store the crude oil from two tankers lying at anchor.

On Tuesday, the Auditor General warned of a possible fuel crisis due to the dilapidated condition of the network of pipelines which used by the Ceylon Petroleum Corporation.  

Refined petroleum products are currently stored in tanks installed at Kolonnawa and Muthurajawela. Imported fuel is discharged from ships, docked in the Colombo Port and carried through the network of pipelines to these terminals.

The Auditor General had pointed out that the pipelines, installed some 40 to 70 years ago had deteriorated. The normal lifespan of such pipelines is only 25 years. Two pipelines have been abandoned because they were beyond repair.

There is no facility for inter-terminal transfer of fuel between Kolonnawa and Muthurajawela. Twenty seven instances of oil leakage were reported from April to November 2012. (Chatruranga Pradeep)

Rupture costs CPC a loss of Rs.3m a day -Trade Unions allege

Posted by Unknown on Thursday, June 12, 2014 | 0 comments | Leave a comment...

Trade Unions charge that the Ceylon Petroleum Corporation incurred a loss of three million rupees daily as a result of a rupture in a pipe-line of a loading buoy anchored off-shore, to supply fuel to the country.
The trade unions point out that this situation has arisen as a result of the improper maintenance of the buoy.
Representatives point out that the CPC is incurring a loss due to this issue for the past three weeks.
Chairman of Petroleum Public Workers Union, Ashok Ranwala said: “One side of the loss is that the new hose is damaged. The other is that 25,000 to 30,000 US Dollars are lost on a daily basis because of the inability to obtain crude oil. In Sri Lankan rupees that is about 2.5 million to three million. This hose can be used for a period of ten years. The issue here is that the new hose has ruptured within months. That is why this loss is being incurred …”
Managing Director of CPC, Susantha Silva shared these views over the phone:
“There is a truth in what they are saying. That is the hose has ruptured within a short span of time. We have not identified the exact spot yet. We need to conduct a study. This incident took place over a week ago. But we did not have a way to go out to sea because of rough weather. We hope to rectify this withing 2 – 3 days …”

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