• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 16 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 4 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 day Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 8 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 5 mins Renewable Energy Could "Effectively Be Free" by 2030
  • 9 hours Venezuela set to raise gasoline prices to international levels.
  • 1 day Batteries Could Be a Small Dotcom-Style Bubble
  • 21 hours Saudi Fund Wants to Take Tesla Private?
  • 20 mins Starvation, horror in Venezuela
  • 2 hours Are Trump's steel tariffs working? Seems they are!
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 1 day Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 14 hours Corporations Are Buying More Renewables Than Ever
Deciphering The New Caspian Agreement

Deciphering The New Caspian Agreement

The Caspian deal is a…

Is Deepwater Drilling More Profitable Than Shale?

Is Deepwater Drilling More Profitable Than Shale?

Conventional wisdom in oil markets…

India’s Hunger For Oil Storage Causes Long Gas Lines In Sri Lanka

Gasoline

The Ceylon Petroleum Common Workers Union has stopped releasing gasoline from 12 storage facilities, causing long lines at gas stations across Sri Lanka. The industrial action came in response to government plans to lease 14 of 99 oil storage tanks to Indian state oil companies.

The secretary of the trade union told AP that the oil workers are planning to take further steps and completely stop working at Sri Lanka’s state refinery, if the government does not put a stop to the plans. According to the workers, this plan will compromise Sri Lanka’s sovereignty and will only be of benefit to the Indian side.

Some of the tanks were already leased to a local division of Indian Oil Corporation back in 2002, as they were sitting unused at the port of Trincomalee. Now, Colombo plans to lease 14 and strike a joint venture with India for the utilization of the rest of the tanks.

A spokesman for the Ministry of Petroleum Resources Development told media that no agreement with the Indian side has been finalized and that the minister will meet with the workers’ union today to discuss their demands.

With its growing demand for crude oil and fuels, India is in urgent need for more oil storage capacity. Earlier this year, New Delhi signed an agreement with the UAE to fill an underground storage facility in Mangalore to store 6 million barrels of crude oil. The agreement is part of efforts to build emergency storage capacity totaling 36.87 million barrels in underground facilities. The amount is equal to the country’s ten-day consumption based on 2016 demand figures.

Now, India is building two more strategic storage facilities to add to the existing three in a bid to insure itself against future shortages. The Sri Lanka agreement is most likely part of these insurance efforts.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News