Sri Lanka’s cabinet has approved awarding a contract to China Petroleum Pipeline Engineering Company Limited to build an aviation fuel storage complex and a dedicated transport pipeline to Bandaranaike International Airport (BIA) in Katunayake.
The project is valued at 40.84 million US dollars alongside 8,548.75 million Sri Lankan rupees, inclusive of applicable taxes, minister Nalinda Jayatissa said.
The project involves building an aviation fuel storage tank complex with a total capacity of 92,000 cubic meters and related facilities at Muthurajawela.
A dedicated fuel transport pipeline will be constructed to link the new Muthurajawela storage facility directly to the aircraft refueling terminal at Katunayake.
The contractor will also carry out required modifications and upgrades to the existing terminal installations at Muthurajawela.
“Bids were invited following the international competitive bidding procedure, and three bids were submitted,” Jayatissa said.
Initial approval for the project was granted at a cabinet meeting on July 29, 2024, to establish a direct, secure fuel link between the supply hub and the country’s main international airport.
Aviation fuel is currently moved to Katunayake primarily by road bowsers and rail wagons, creating logistical bottlenecks, higher freight expenses, and safety risks.
The dedicated pipeline system is expected to ensure an uninterrupted, cost-effective supply of jet fuel to airlines as flight frequencies expand at the Katunayake gateway.