LIOC to commission lube oil blending plant next month

Lanka Indian Oil Corporation (LIOC), a subsidiary of the Indian Oil Corporation will commission its lube oil blending plant in Trincomalee by the end of September, said LIOC Managing Director K.Ramakrishnan.

He said there is only one lube oil blending plant operated by Caltex Lubricants in Kolonnawa. The plant was formerly owned by the Ceylon Petroleum Corporation (CPC). "LIOC will service the local market and then consider exporting to Mauritius, Dubai, Bangladesh and the Maldives", Ramakrishnan said.

He said their objective was to develop the local lube oil industry and be a healthy competitor in the local market.

LIOC will operate the terminal on a 850 - acre block at the China Bay oil tank farm given by the Government on a long-term lease.

The lube oil plant with a capacity to blend 18,000mt per year is under construction with an investment of Rs. 600 million.

Ramakrishnan said LIOC plans to expand its sale of bunker fuel oil to Galle and Hambantota and service the traffic calling ports.

LIOC which started bunker fuel sales three years ago in Trincomalee has a limited sales volume due to the limited traffic.

"The company is planning to increase the number of petrol sheds and is awaiting Government approval for 325 new sheds", Ramakrishnan said.

LIOC which operates over 150 petrol sheds will revamp its existing sheds and construct new sheds with modern facilities.